Published On: Wed, Oct 22nd, 2014

Insecurity puts Mexican Economy at Risk

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According to various studies, insecurity costs Mexico between 0.5 and 1% of GDP every year, i.e., between 90 and 180 billion pesos (6.6 to 13.2 billion dollars).

The recent problems of insecurity and violence in the country can dissuade entrepreneurs from investing in Mexico, so it is necessary that the federal government does not underestimate the incidents and attacks this phenomenon decisively, analysts warned.

According to various studies, insecurity costs Mexico between 0.5 and 1% of GDP every year, i.e., between 90 and 180 billion pesos (6.6 to 13.2 billion dollars).

A report by the Center for the Analysis of Public Policies “México Evalúa” concluded that public spending on security has grown in recent years with no evident impact on security and criminal justice.

Mass Grave near Iguala Guerrero (Photo: NY Times)

Mass Grave near Iguala Guerrero (Photo: NY Times)

Also, a study conducted by the consulting firm FTI revealed that entrepreneurs and business managers in Mexico are worried about insecurity: 57% of employers have been affected, to one degree or another, in their operations by the negative insecurity climate.

The Center of Research for Development (Cidac) said in an analysis that if Mexico’s government continues dismissing the seriousness of having a frail state in deterioration, as if nothing was happening, it could have a strong impact on growth expectations after the constitutional reforms.

According to a report by the Center for the Analysis of Public Policies “México Evalúa”, public spending on security has grown in recent years with no evident results on security and criminal justice.

Source: http://www.eluniversal.com.mx

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