Venezuela’s Migrants Bring Economic Opportunity to Latin America
The arrival of Venezuelans seeking better lives has strained the economies—and societies—of Latin American host countries that are already balancing tight budgets, especially since the pandemic.
Colombia, which has received the most Venezuelan migrants, estimated spending about USD600 per migrant in 2019. This covered humanitarian aid, healthcare, childcare, education, housing, and job-search support. With more than 2 million arrivals, this translates into USD1.3 billion in assistance. In 2019, this cost peaked at 0.5 percent of Colombia’s GDP.
In the long term, however, this investment has the potential to increase GDP in host countries by up to 4.5 percentage points by 2030, as we find in our latest research on the spillovers from Venezuela’s migration.
To reap the benefits from migration, host countries need to integrate the new arrivals into the formal labor force—and society—by promptly offering them work permits and access to education and healthcare.