Crime “damages” Mexico economy

Mexico’s finance minister has said that crime and violence have had a significant impact on the country’s economy, cutting growth by 1%. Agustin Carstens said the country’s insecurity was stopping companies from investing and creating fewer jobs. At least 2,700 people have been killed and 300 kidnapped in Mexico this year, mostly in drugs-related violence. On Saturday, hundreds of thousands of people attended marches across Mexico to protest against rising crime rates. The BBC’s Warren Bull says that Mexicans are used to hearing about the impact of violent crime on their society, but now the government has said there is an economic consequence. Mr Carstens told the Reforma newspaper that the need for extra security was increasing business costs by up to 10%, which was damaging job creation, sales and development. “We estimate that this feeling of insecurity in the country takes away approximately one percentage point of growth,” he said. But he said that there were businesses which would be willing to invest in Mexico if the rule of law were stronger, and proposed a tougher regime against money laundering.

Related posts:

1. Loreto – Mexicos Frontier

Become a member of b.i.n. - Baja Info Network.



.