The direct contribution of refugees and migrant employment to GDP per country/region
(Average 2017-21; percent)
Sources: IMF, World Economic Outlook database April 2023; Penn World Tables 10.01; ILOSTAT database on International Labour Migration Statistics (ILMS); and IMF staff calculations. Note: PPP GDP-weighted average for country groups. LAC = Latin America and the Caribbean; AE = advanced economies excl. USA; EMDE = emerging market and developing economies excl. LAC and China.
Costa Rica, known for its relatively open immigration stance, has reaped economic rewards from hosting a significant number of refugees and migrants. A 2023 study conducted jointly by the IMF, IDB and UNHCR reveals that between 2017 and 2021, refugees and migrant workers contributed a substantial 6.5% to the country’s GDP. This level of contribution aligns Costa Rica with high-income nations (6.9% on average), a notable achievement given that other emerging markets typically see only 1.2% on average of their GDP driven by foreign labour.
The analysis highlights the role of migrant and refugee workers, predominantly Nicaraguans, who make up 82% of Costa Rica’s foreign-born population. These workers are primarily employed in agriculture, construction, and other low-skilled sectors. Despite challenges like informality and wage gaps, their contribution to the labour force has been significant to Costa Rica’s economic growth. With the foreign-born population comprising 10% of Costa Rica’s total, the country stands as a model in Latin America for leveraging migration to bolster economic resilience while managing fiscal impacts and contributions.