Venezuelan Migrants in Colombia: a Blessing for the Economy, a Challenge for Integration

A new International Organization for Migration (IOM) study reveals an interesting fact: Venezuelan migrants in Colombia contributed a significant USD 529.1 million to the country’s economy in 2022. This finding echoes across Latin America and the Caribbean, highlighting the positive economic impact of Venezuelan migrants.

“Migration fuels development,” says Diego Beltrand, IOM’s special envoy for the regional response. “This study provides concrete evidence, showcasing how migration can bolster host countries’ economic and social fabric.”

Fiscal Impact of Venezuelan Migrants in Colombia

The study, titled “The Fiscal Impact of Venezuelan Migrants in Colombia: Reality versus Potential,” reveals that the 2022 contribution represents nearly 2% of Colombia’s total tax revenue. With full Venezuelan regularization by 2023, this impact could surge to USD 804.3 million.

A remarkable aspect of the study is the high employment rate among Venezuelan migrants. A staggering 90% of the working-age population is employed, with 20% boasting higher education. However, only 18% work in their respective fields, with many finding themselves in the informal sector, limiting their earning potential.

Further research in Aruba, Costa Rica, Chile, the Dominican Republic, and Peru confirms the positive economic impact of Venezuelan migrants and refugees in Colombia and these countries. Notably, in Panama, Venezuelan entrepreneurs have invested over USD 1.8 billion in the past decade, creating approximately 40,000 jobs, with 70% filled by Panamanians. As of April 2024, there are an estimated 7.7 million Venezuelan migrants and refugees worldwide, with 6.6 million living in Latin America and the Caribbean.

The study also identifies hurdles faced by young Venezuelan migrants, particularly women who experience lower employment rates. Despite efforts to improve employment prospects and public services, validation of professional qualifications, discrimination, and xenophobia can impede socio-economic integration.

This IOM study, conducted in collaboration with CAVEX, Konrad Adenauer Stiftung, and FIP, marks a turning point. It recognizes the transformative potential of Venezuelan migrants in building inclusive communities across Latin America and the Caribbean. These findings pave the way for policies and initiatives that promote their integration and ensure sustainable development throughout the region.