The Daily Journal.- Venezuela’s private industrial sector recorded 8.1% year-over-year growth in production volume during the first half of 2026, driven by gains of 9.9% in the first quarter and 6.5% in the second quarter, the Venezuelan Confederation of Industrialists (Conindustria) reported as it presented its Industrial Economic Survey for the second quarter of 2026 (ECI-II26).
Although growth slowed between April and June, when production rose 6.5% compared with the same period in 2025, Conindustria said the sector continues to post positive results amid macroeconomic difficulties and problems with public services.
Conindustria President Tito López attributed part of the second-quarter performance to investments that companies made with their own resources to keep their production lines operating.
“We have focused on sustaining our operations. Achieving 6.5% growth despite these challenges demonstrates the resilience of private enterprise. However, the year-over-year slowdown warns us that we urgently need to align public policies to prevent industrial potential from losing momentum,” López said.
Auto parts led growth
Manufacturing performance varied across industrial sectors. The auto parts sector recorded the highest year-over-year growth at 49%, followed by metals and metal products at 23.3%; beverages at 18.2%; pharmaceuticals at 17.7%; textiles and footwear at 12.3%; non-metallic products at 12%; and wood and paper at 10.2%.
In contrast, some activities contracted. Plastics and rubber fell 12.7%, while machinery and equipment declined 4.9% and food production dropped 4.1%.
Performance also varied according to company size. Large industries increased production by 8.4%, and medium-sized industries grew 5.5%, while small industries contracted by 4.7%.
“The figures for small industries demand immediate attention and tax relief. Small businesses drive regional economic activity and urgently need financial support,” López said.
Taxes and electricity among the main constraints
The survey identified taxes and parafiscal charges as the main obstacle to manufacturing activity. Seventy percent of the industrial companies surveyed cited them as a factor restricting their operations.
Electricity service failures ranked second, with 68% of companies citing them as a constraint. The macroeconomic environment, including inflation and currency depreciation, ranked third at 46%.
Fifty-one percent of companies reported restrictions on accessing and moving foreign currency, while 45% of the industrial companies surveyed said a lack of financing affected their operations.
According to the survey results, these factors limit companies’ ability to maintain production levels and invest in and modernize their production lines.
Conindustria proposes a “bridge law”
In response to these constraints, Conindustria reiterated its proposal to create a “Bridge Law,” or temporary legal framework for the economic transition, designed to simplify the regulatory environment and facilitate the recovery of the productive sector.
According to the business association, individually amending the 206 laws that currently affect manufacturing would take about 34 years. At the same time, transitional legislation would remain in effect for an estimated three to five years.
The proposal includes tax relief, regulatory flexibility and changes aimed at correcting monetary and exchange-rate distortions.
Conindustria argues that the measure would also provide stronger legal guarantees, reduce country risk and facilitate access to bank financing as well as domestic and foreign investment.
With information from a press release
