Immigration plays a double role in Venezuela, now more than ever, for different reasons. It was sidelined in the electoral process, which could aid Maduro on July 28, yet the economic contribution of émigrés remains essential. They power one of the engines of a dollarized economy, a model President Nicolás Maduro paints to undecided voters as a future cure, provided he stays at Miraflores.
“I have solid data: from 2013 to 2023, about 2.5 million Venezuelans left as economic migrants. From 2020 through 2023, closing 2023 and into part of 2024, about 1.2 million have returned, roughly half of those who left,” Maduro stated during a televised cycle.
The Inter-Agency Coordination Platform for Migrants in Venezuela (R4V) notes otherwise that 7.7 million people have left the country due to the social crisis and political conflict. Nearly 2.9 million are in Colombia, about 1.5 million in Peru, followed by the United States with 545,200, Brazil with 510,499, and Ecuador with 474,945. Of that total, only 69,211 will vote this Sunday, a small number compared to the 21.6 million citizens eligible to vote.
The exercise of voting rights by migrants is a top political issue. Many carry old grievances and resentments and would have backed Edmundo González Urrutia, the candidate of the Democratic Unity Platform, who is labeled by official media as ultrarechista.
Pillar of the domestic market
In Buenos Aires, 150,000 Venezuelans reside with voting rights, yet only 500 will cast ballots. The National Electoral Council (CNE) ignored a demand from the Inter-American Commission on Human Rights (CIDH) two months earlier, which urged the body to guarantee the right to vote for compatriots abroad, regardless of migratory status.
A recent Delphos poll shows that 25% of respondents would leave the country if the opposition is defeated. If Maduro wins and the projection holds, current migrants become a fundamental pillar of the domestic market. They supply significant money that fuels an effectively dollarized economy by sending remittances to their families.
Ecoanalítica reports that remittances reached $3.0 billion in 2023, about 3% of GDP. Other studies place the figure higher as the exodus grew. In 2018, one of the toughest years of internal conflict, remittances reached $1.3 billion.
For 2024 another remittance record is anticipated. Families typically receive about $65 monthly, a sum that plays a key role in domestic consumption. Encovi data shows that 94% of recipient households use this money for food from a basic basket valued at around $525, and sometimes to cover medicines. A notable change in recent years is that for every $100 entering the country, nearly $10 circulates as cryptocurrency, helping to avoid Bolivar volatility and government-imposed restrictions.
In this regard, the migrant flow becomes a central factor in the domestic economy, acting as a stabilizer in a context of political and economic tension that still shapes everyday life for many households.
South America’s surprise
Maduro shifted from demonizing the U.S. dollar to embracing it as a crucial tool for stabilizing the economy. Its use in a wide range of transactions, from housing to everyday purchases, has helped curb inflation and boost consumer activity. Inflation rates have fallen from historic highs of over six million percent in 2018 to lower, though still elevated, levels in subsequent years. The inflation path shows a clear descent, with notable fluctuations in the early 2020s and a steady slowdown in the first half of this year.
On more than one occasion, Maduro urged Venezuelans living abroad to return, calling the country the “surprise of South America.” The economy has started to recover some momentum, with the oil sector playing a critical role in growth after a deep GDP contraction. OPEC notes higher crude production, helped in part by American company Chevron’s activity in Venezuela following a U.S. authorization. The year is expected to bring a better growth trajectory for the national economy.
Luxury consumption costs higher than in Zurich
The de facto dollarization, supported by a favorable ruling from the Supreme Court, has injected liquidity into the domestic market while widening inequalities in a country where poverty remains widespread. Not all Venezuelans can afford luxury towers in Caracas or pay rents near USD 450, or access the high-end shops in neighborhoods that resemble a Miami lifestyle more than a traditional Caribbean city. The Economist noted that dining in certain upscale districts can cost more than in Zurich, Los Angeles, Abu Dhabi, Bahrain, or Beijing. At Fattoria Montepulciano in the HTO Business Center, diners can start with Minestrone or Zuppa di Pomodoro and later enjoy linguine, tagliatelle al tartufo, or ravioli funghi, with meals typically costing between 45 and 60 euros per person. Sereno remains a notable option for premium Italian cuisine. The national press highlighted that each guest might pay around 70 euros for a complete meal.
Meanwhile, a newer generation of Caracas residents faces a different reality. The city’s dual character persists: a consumer landscape that mirrors global luxury trends alongside neighborhoods that show the strain of a prolonged economic crisis. The juxtaposition illustrates how migration, remittances, and dollarization shape a complex, evolving urban economy that affects everyday choices and long-term planning for families across the country.