In 2022, the tax contribution of Venezuelan migrants living in Panama was $203.2 million, a figure that could exceed $283.1 million, if their status is regulated.

This is the conclusion drawn by the “Study of the economic impact of Venezuelan migration in Panama: Reality vs. potential”, presented by economist David Licheri, during the international summit of the Chamber of Venezuelan Businessmen, Executives and Entrepreneurs Abroad (Cavex), held yesterday, Tuesday.

Taking the contribution as of November 2022 as a reference, Licheri estimates that it could be an increase of 39% that would enter the coffers of the Panamanian State.

The study took as reference the more than 5,000 Venezuelan companies that operate in the country and are responsible for nearly 40,000 direct and indirect jobs.

“Panama is an attractive country for migrants. The country has a lot of fiscal, geographic and transportation benefits,” Licheri said, in an interview with La Estrella de Panamá.

The study showed that Venezuelan companies generated $183.5 million in direct taxes, and $19.6 million in indirect taxes.

While, in terms of expenses, foreigners from the South American country allocated $24.5 million to education and $29.3 million to health, during 2022.

“In the last 10 years, Venezuelans invested $1,836 million, an amount with which multiple works could be carried out,” said the economist.

In 2023, more than 500,000 undocumented migrants entered the country, of which 320,465 were of Venezuelan nationality, being the main country of origin. A record number that involves more than 1,000 immigrants daily crossing the borders of Panama, coming from various countries.

Data from the National Institute of Statistics and Census (Inec) show that by 2023 there were 58,158 people from Venezuela living in Panamanian territory. “When we did the study, we realized that this population was responsible for 3.89% of national consumption in 2021, but they only represented 3.3% of those who lived in Panama at that time. “We are talking about citizens who contribute a lot to the local economy,” he said.

When asked about the level of formalization of the jobs that this population generates, Licheri highlighted that 93.8% of Venezuelan employees are formalized.

According to data from the Chamber of Commerce, Industries and Agriculture of Panama (Cciap), the national unemployment rate, for August 2023, was 7.4% (155,000 unemployed people), where 5 out of every 10 jobs corresponded to informal jobs (765,000 employees ).

Additionally, the Cciap estimates that 54% of unemployed people in Panama are between 18 and 30 years of age, and that part of this is due to the need to improve local human resources.

Manuel Ferreira, director of Economic Affairs and Analytics at Cciap, commented that national workers have five aspects to improve to increase their employability: the lack of talent and experience of human resources, the need to master more than one language, the importance has mastery of technology, the fundamental thing is to develop better soft skills, and better academic preparation.

In contrast, Licheri alleged that “49.9% of Venezuelans living in Panama have higher education and 64.7% also have technical training. However, the other half represents a great challenge,” she highlighted.

Regarding the possibility that these people hinder Panamanians from obtaining employment, the economist considers that “there is no evidence that this could happen, given that in Panama there are more than 30,000 Panamanians who are employed by Venezuelans.”

“What we want to encourage from Cavex is that there be processes of attraction, of investments that allow for the generation of jobs for locals and foreigners. “We are not betting on a limited market, but rather an abundant one that can absorb all workers,” I concluded.