Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result
Home Uncategorized

For Venezuelas Neighbors, Mass Migration Brings Economic Costs And Benefits

admin by admin
September 6, 2021
in Uncategorized
0
0
SHARES
27
VIEWS
Share on FacebookShare on Twitter

from the International Monetary Fund

— this post aurthored by Emilio Fernandez Corugedo and Jaime Guajardo

The world’s newest migration crisis is unfolding in Latin America, where Venezuela’s economic collapse and unprecedented humanitarian crisis has sparked a wave of emigration to neighboring countries. While these countries are providing helpful support to migrants in many areas, large migration flows have strained public services and labor markets in these countries.

According to the Response for Venezuelans, which is a joint International Organization for Migration and UNHCR platform, the total number of migrants leaving Venezuela reached about 4.6 million in November 2019 – with about 3.8 million settled in Latin America and the Caribbean.

Venezuela’s migration can potentially raise GDP growth in receiving countries.

Without a clear end in sight to the crisis and amid rising social tensions across the region, how can Latin American governments best craft a coordinated response that serves the needs of refugees while protecting their citizens and economies? Striking this balance will be critical, but also potentially beneficial.

Our latest research finds that Venezuela’s migration can potentially raise GDP growth in receiving countries by 0.1 to 0.3 percentage points during 2017 – 2030. Policies, including greater support for education and integration into the workforce, could help migrants find better-paying jobs and, ultimately, help raise growth prospects for countries receiving migrants.

Crisis and Exodus

Since the beginning of the crisis, living conditions have severely deteriorated for Venezuela’s 31 million inhabitants. Extreme poverty rose from 10 percent of the population in 2014 to 85 percent in 2018. And severe shortages of food and medicines continue to plague the population.

Making matters worse is the sharp drop in economic activity, which has contracted by around 65 percent between 2013 and 2019. This was driven by plummeting oil production, worsening conditions in other sectors, and pervasive electricity blackouts.

Meanwhile, hyperinflation continues unabated with monthly price increases of about 100 percent, rivaling other historic hyperinflation episodes.

Facing these harsh living and economic conditions, migrants are fleeing Venezuela and settling in neighboring countries.

Colombia has received the largest share, followed by Peru, Ecuador, Chile, and Brazil. Migration flows to some countries in the Caribbean and Central America have been even larger relative to their local populations, though smaller in absolute numbers.

Based on current trends, our research projects that the total number of migrants could reach 10 million in 2023 – although with a wide range of uncertainty around this figure. If realized, Venezuela’s mass migration would overtake past refugee crises – for instance, Syria in the 2010s or Afghanistan in the 1980s.

Regional spillovers

What does an exodus of this scale imply for the region? Spillovers from large migration flows from Venezuela are expected to place immediate pressures on fiscal spending and labor markets in recipient economies, but over time they would also contribute to higher economic growth.

On budgetary pressures, receiving nations are providing helpful support to migrants in the form of humanitarian aid, basic healthcare, education, validation of educational titles, and job search.

Using detailed data for Colombia on each of these categories as a benchmark, estimates suggest that public spending related to growing migrant populations could reach around 0.6 percent of GDP in Colombia by 2023, 0.3 percent in Ecuador and Peru, and 0.1 percent in Chile.

The overall impact on the fiscal deficit would be smaller than what the higher spending would imply, because tax revenue would also increase as the economy expands.

Over time, real GDP growth is expected to increase as the size and skills of the labor force expand, as many Venezuelan migrants bring relatively high levels of education and skills. Factors such as language and culture may also help migrants from Venezuela integrate more easily into regional economies in Latin America compared to other recent migration episodes. The expansion of the labor force would also lead to higher investment.

In the near term, however, the influx of migrants – depending on the speed and scale of the inflows – can place pressure on labor markets to absorb them, displace some local workers, and increase informality.

Taking into account the age, size, and skill levels of migrants, as well as the fact that most have taken low-skilled jobs in the informal sector, Venezuela’s migration is estimated to raise GDP growth in recipient countries by 0.1 to 0.3 percentage points during 2017 – 2030.

The growth impact could be larger and more immediate if migrants can find jobs in line with their educational level – a transition that can be made easier by policies.

Policy Challenges

A key challenge for policymakers in the region is how to manage the transition at a time when their economies have slowed, and many countries need to reduce their fiscal deficits.

In the near term, facilitating the integration of migrants into the domestic labor market and easing the process to validate their professional titles or to set up businesses would maximize the impact on growth and minimize the need for public support.

Multilaterally, international cooperation to assist the main receptors of Venezuelan migrants with the costs of migrant assistance should be considered. Individual country actions toward migrants, such as border restrictions, can complicate the situation for other partners – pointing to the need for a more regional approach.

Looking further ahead, providing migrants with access to education and healthcare will be key to ensuring they live long and productively to benefit not only themselves but also the economies in which they reside.

Source

https://blogs.imf.org/2019/11/21/for-venezuelas-neighbors-mass-migration-brings-economic-costs-and-benefits/

Disclaimer

The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board.

Previous Post

The Souk Al-Manakh Crash

Next Post

New Evidence Points To Mounting Trade Policy Effects On U.S. Business Activity

Related Posts

Uncategorized

The Best Bitcoin Lottery UK 2022 – An Expert’s Pick!

by admin
February 17, 2022
Uncategorized

Founders Retire. GEI Transferred To New Owner

by admin
September 7, 2021
Uncategorized

27 August 2021 Coronavirus And Recovery News: Denmark Says COVID Is No Longer A Critical Threat – Lifts All Restrictions Starting Next Month

by admin
September 6, 2021
Uncategorized

27Aug2021 Market Close: U.S. Rigs Inch Higher As Prices Recover, WTI Crude Settles At 68.71, DOW Closes Up 243 Points, Nasdaq Up 1.2%, Silver Inches Higher 24.05, Bitcoin 48400

by admin
September 6, 2021
Uncategorized

27Aug2021 Midday Update: SP 500 / Nasdaq Hits Record Highs As Prudent Powell Stands Pat On Policy, DOW Up 217 Points At 12:30 ET, Nasdaq Up 1.1%, Bitcoin 48100

by admin
September 6, 2021
Next Post

New Evidence Points To Mounting Trade Policy Effects On U.S. Business Activity

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins banking banks Binance Bitcoin Bitcoin adoption Bitcoin market Bitcoin mining blockchain BTC business Coinbase crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi digital assets Elon Musk ETH Ethereum finance funding investment market analysis markets Metaverse mining NFT NFT marketplace NFTs nonfungible tokens nonfungible tokens (NFTs) price analysis regulation Russia social media technology Tesla the US Twitter

Archives

  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Toronto Stock Exchange Suspends Voyager Digital Trading
  • UK Gas Prices Surge To 3-Month Highs As Norway Workers Strike
  • Sainsbury’s Boss Cautions UK Living Costs Crisis Will ‘Only Intensify’

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish