Venezuelan migrants contribute $10 billion yearly to Latin America, Caribbean economies

A new study released by the International Organization for Migration (IOM) has revealed that Venezuelan households contribute more than USD 10.6 billion every year to the economies of Latin America and the Caribbean, mainly through spending on housing, food, education and health services. This level of consumption highlights the significant economic impact migrants have on growth throughout the Latin America and Caribbean region.

“Countries across Latin America and the Caribbean have seen that migration is a source of economic growth, as well as creativity and dynamism,” said Maria Moita, IOM Regional Director for Latin America and the Caribbean. “The findings of this study clearly show that when governments expand opportunities for migrants through regularization and integration, entire societies benefit.” 

The report also notes that Venezuelan migrants make valuable fiscal contributions, representing around 1.2 per cent of total tax revenue across the countries analyzed. In Colombia alone, this contribution has exceeded USD 529 million in a single year. 

Beyond consumption and public revenue, Venezuelan entrepreneurship is also emerging as a powerful engine of job creation. Migrant-led businesses have generated approximately 40,000 jobs in Panama and driven more than USD 1.1 billion in investment in Aruba. These enterprises strengthen local economies, spur innovation, and energize sectors such as technology, tourism, and gastronomy. 

The analysis – based on research conducted since 2021 in Colombia, Panama, Ecuador, Chile, Costa Rica, the Dominican Republic, Peru and Aruba – confirms that Venezuelan migrants are highly productive and bring strong technical and university-level skills that respond to labour market needs in host countries. 

However, this potential remains constrained. An estimated 82 per cent of Venezuelans in the Latin American and Caribbean region work in the informal labour market, and 41 per cent lack access to credit or formal financial services. These barriers limit economic autonomy, business growth, and their ability to contribute even more substantially to local development. Importantly, informality is driven by structural obstacles that limit access to formal employment, rather than by regularization itself. 

The study emphasizes that the economic gains observed have been possible in large part thanks to the efforts of host governments to expand documentation and regularization processes. Of the 6.9 million Venezuelans living in Latin America and the Caribbean, about 70 per cent now hold regular migration status, enabling millions to access opportunities otherwise out of reach and to move gradually toward fuller participation in formal economies. Regularization is thus a necessary foundation for reducing informality and maximizing migrants’ economic contributions. 

The release of the report coincides with International Migrants Day, marked on 18 December. On this occasion, IOM calls for renewed commitment to policies that recognize migrants’ contributions, uphold their rights, and support regularization and integration efforts that benefit both migrants and the communities that host them.