Violence in Mexico causes high economic cost superior to $2,000 dollars per person
Given the violence experienced in some regions, shops and small businesses have closed or invested in security to protect their property
The global economic impact of violence reached $19.97 trillion dollars annually, equivalent to 3.4 percent of the gross domestic product (GDP), almost 80 percent of the country's education budget, equivalent to $2,455 dollars per person.
Al launch the XXXI Mexican Economy Seminar 2025. "Economic Consequences of Crime and Violence in Mexico", at the Institute of Economic Research (IIEc) of the National Autonomous University of Mexico (UNAM), Professor Miguel Armando Lopez Leyva, added that this impact has increased annually for 11 of the last 16 years.
According to experts, the direct negative effects of organized crime impact productivity growth, that is, regions with a large number of criminal organizations often experience lower GDP per capita and reduced real growth rates, indicating a broader pattern of poor economic performance.
In that sense, these variables can significantly affect business confidence, emphasizing the importance of a stable economic environment to foster growth.
According to the data presented, organized crime activity remains the main driver of extreme levels of violence. The economic impact of this was estimated at $230 billion dollars, six times greater than the public investments made in health, and more than five times greater than the public investments made in education during 2024.
For his part, Jorge Basave, former director of the Economic Research Institute at UNAM, said that companies allocate between 2 and 10 percent of their budget to security each year, which reveals that "crime is widespread throughout the national territory."
Furthermore, he lamented that currently, and for the past decade, organized crime has been the main cause of extreme levels of aggression: "what affects us and hurts us the most in the issue of crime and violence are the victims, those murdered, the impunity, and how many young people ruin their lives."
This news has been tken from authentic news syndicates and agencies and only the wordings has been changed keeping the menaing intact. We have not done personal research yet and do not guarantee the complete genuinity and request you to verify from other sources too.