Venezuelan migrants boost South American economies, studies find
An exodus of nearly 8 million Venezuelan migrants who have fled poverty and political turmoil is boosting the economies of other South American countries, according to two studies published by major international financial institutions.
The foreign workforce will boost the economies of its main host countries in Latin America and the Caribbean by between 0.10% and 0.25% on average each year from 2017 to 2030, according to the research conducted by the World Bank, the Inter-American Development Bank, the Organization for Economic Cooperation and Development (OECD), and the United Nations Agency for Refugees (UNHCR).
The Venezuelan migration crisis, now the largest in Latin American history, began when the country’s economy collapsed in 2014, leading to rampant inflation, poverty, and insecurity. More than 6.5 million of the 7.7 million people who have left Venezuela have sought a better life in countries such as Brazil, Chile, Colombia, Ecuador, and Peru.
While Venezuelans are often blamed for overburdening healthcare systems and economies across the region, the studies found that their contribution to the workforce benefits local economies by filling undesirable jobs and increasing local demand for goods and services, leading to an increase in tax revenue.
In Colombia, the arrival of 3 million Venezuelans has helped formalize the country’s economy, as migrants are more likely to accept low-paying official jobs, such as bus drivers. This has led to an increase in the tax base, which is particularly important as the Colombian economy ages.
Despite the challenges faced by South American countries with low economic growth, the World Bank predicts the region will see a 2% growth in 2023, lower than any other region in the world. Migration, however, is seen as a positive contributor to economic growth and development in the region.
“This study shows what we already knew: migration is good business,” said Ronal Rodríguez, a Colombian researcher studying the impact of Venezuelan migration. “Receiving migrants makes us a better country and allows us to continue growing. It’s as simple as that.”
Read more in The Guardian.