Venezuelan Migrants Inject Billions into Latin America Despite High Informality

According to a new report by the International Organization for Migration (IOM), the 6.9 million Venezuelan migrants living across Latin America have generated at least $10.6 billion in economic activity every year. Yet, despite this massive contribution, a significant portion of this population remains in the shadows of the informal economy, navigating a patchwork of regulations that vary wildly from country to country.

While the arrival of nearly 7.9 million Venezuelans globally has presented social challenges, the IOM data suggests the migration is now a critical economic engine. In Colombia alone, home to nearly 3 million Venezuelans, the population contributed more than US$529 million in taxes, according to the report.

“The countries of Latin America and the Caribbean have proven that migration is a source of economic growth, as well as creativity and dynamism,” said Maria Moita, IOM regional director, in statements reported by El Pais.

Venezuelan migrants in Latin America have seen a degradation of skills 

However, the region faces a paradox of “degradation of skills.” The IOM report highlights that while the Venezuelan diaspora is often highly educated, barriers to credential recognition force many into low-skilled labor.

In Peru, less than 10% of Venezuelan professionals practice their careers. The report estimates that if these bureaucratic hurdles were removed in Peru, the fiscal contribution there could jump by over 51% to nearly US$798 million.

The legal status of migrants varies drastically across borders, creating unequal integration outcomes. Peru leads the region in documentation, with 80.8% of its 1.6 million Venezuelan residents holding regular status. Colombia follows, with approximately 65.8% of its migrant population regularized. Chile, Ecuador, and Aruba lag significantly behind, with regularization rates failing to reach 30%.

According to El Pais, the cost of regularization is a major deterrent. In some instances, families must pay up to US$3,000 per person to validate documents from their country of origin, a prohibitive sum for those earning daily wages. Consequently, 82% of Venezuelans in the region work in the informal market.

Venezuelan’s who represent 8.2% of the total Chilean population may soon be subjected to deportations 

Nowhere is the tension between economic contribution and political reality more visible than in Chile. There, Venezuelans represent 8.2% of the population but drive 10% of the economy. They have provided a crucial injection of youth into an aging workforce. However, the political winds have shifted. Despite the economic data, the recent election of Jose Antonio Kast has introduced uncertainty.

According to reporting on the election, Kast has proposed the creation of a “corridor” to return migrants to their countries of origin, signaling a potential reversal of integration policies in a country where only 24.8% of Venezuelans currently hold regular documentation.

While the region debates economics and borders, Bogota has developed a specific infrastructure to handle the most vulnerable demographic: children. 

In Bogota’s Las Cruces neighborhood, the “Centro Abrazar” operates as a sanctuary for migrant children. It is not a school, but a transitional bridge designed to catch those falling through the cracks.

According to reporting by El Pais, the center serves as a safe harbor where children receive vaccinations, nutrition assessments, and meals while their parents seek employment. “The centers are a bridge between the excluded population and the rest of the district’s offer,” Roberto Angulo, Bogota’s Secretary of Social Integration, told El Pais.

The need is acute. In Bogota, where Venezuelans make up 7.4% of the population (over 590,000 people), many families arrive directly from the migration route, sometimes having walked for months.

At Centro Abrazar, staff assist parents in navigating the Colombian health care system (EPS) and securing spots in public schools. The city has invested heavily in this integration model. The budget for Centro Abrazar alone exceeded US$536,000 (2 billion pesos) for 2025. Between October 2024 and 2025, the facility attended to 1,613 minors, providing a crucial pause for families.