Private Manufacturing Reported 9.9% Growth in the First Quarter of 2026

Economy

The  Daily  Journal.-  Venezuela’s  private  manufacturing industry  recorded  a  year-over-year  growth  of  9.9%  in  production  volume  during  the  first  quarter  of  2026,  according  to  the  results  of  the  latest  Industrial  Economic  Survey  (ECI-I26)  released  by  the  Venezuelan  Confederation  of Industrialists (Conindustria).

Conindustria  president  Tito  López  highlighted  that  this  progress  is  the  result  of  the  sector’s  own  efforts  to  rebuild  its  capabilities  after  facing  a  dramatic  decline  of  more  than  92%  in  added value between 2013 and 2020.

“Recording  a  9.9%  growth  demonstrates  that  private  investment  and  operations  are  the  country’s  economic  compass.  We  have  built  certainty  where  there  was  doubt;  now  the  goal  is  to  align  public  policies  with  this  momentum  so  that  Venezuela’s  full  potential  can  materialize  immediately,” the business leader stated on Wednesday during the presentation of the report.

Sectoral Contrasts and Critical Bottlenecks

Despite  the  overall  positive  balance,  growth  has  not  been  uniform  across  industries.  The  metals  and  metal  products  sector  led  the  expansion  with  a  53.2%  increase,  followed  by  auto  parts with 46.1% and the food sector with 15.5%.

On  the  other  hand,  sectors  such  as  machinery,  electrical  equipment,  and  optics  suffered  a  20.5% contraction, while textiles and footwear declined by 11.4%.

López  explained  that  while  some  sectors  have  managed  to  capitalize  on  opportunities,  others  warn  that  “macroeconomic  distortions  are  taking  a  very  heavy  toll  on  entire  production  lines.”

According  to  industrial  leaders,  production  could  reach  even  higher  levels  if  restrictive  factors  currently  acting  as  obstacles  were  resolved.  Sixty-eight  percent  of  respondents  identified  macroeconomic  instability  as  the  main  challenge,  followed  by  excessive  fiscal  and  parafiscal  taxes  affecting  66%  of  companies,  and  weak  domestic  demand  limiting  64%.  Other  critical  factors  include  limited  access  to  foreign  currency  and  scarce  bank  financing,  both  of  which hinder inventory replacement and long-term investment.

Small Industry Under Pressure

The  survey  reveals  a  significant  gap  depending  on  company  size.  While  large  industries  grew  by  13.5%  and  medium-sized  industries  by  4.5%,  small  industries  recorded  a  6.2%  decline  in  production.

López  emphasized  that  this  disparity  requires  immediate  attention,  as  small  industries  are  vital  for  regional  employment:  “Today,  small  industry  needs  more  than  resilience:  it  needs  fiscal  and  operational  oxygen,  as  well  as  financial  leverage.  An  urgent  simplification  of  procedures accompanied by tax relief tailored to its needs is required,” he stated.

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