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Economics

Add a Million Venezuelans and Your Economy Looks Very Different

  • Chile cut rate, saying migrants have boosted potential growth
  • But Peru and Colombia are feeling a strain on public services
The UNHCR built a camp for migrants after the La Guajira, Colombia border became inaundated.

The UNHCR built a camp for migrants after the La Guajira, Colombia border became inaundated.

Photographer: Federico Rios/Bloomberg

Markets were shocked when Chile cut interest rates this month, but the central bank had a simple explanation: The economy suddenly had a lot more people in it.

That’s because of the exodus from Venezuela, where about 4 million people have fled financial and social collapse. They’re showing up across South America, forcing central banks and finance ministries to deal with the economic consequences.