Economic Impact of Venezuelan Migrants

Peru has been the second largest recipient of Venezuelan migrants (behind Colombia), with UN reports estimating 800,000 immigrant arrivals between early 2017 and mid-June 2019—about 2½ percent of Peru’s population.

The absorption of immigrants into the workforce has created some frictions, with the central bank of Peru estimating that the competition from migrant workers has been felt particularly by young, low-skilled workers in the service and commerce sectors.

However, this absorption has also translated into higher growth, with the central bank estimating that around 0.3 percentage points of the GDP growth registered in 2018 can be attributed to higher consumption of the immigrant population. Staff estimates that this impact may peak at around 0.4 percentage points in 2021. However, as frictions to integrate the migrant labor force dissipate in the medium term, larger growth benefits are expected to materialize.