The cost of violence in Mexico increased by 10 percent last year to the equivalent of $268 billion — while the country’s “peacefulness” score sank about 5 percent, according to a global think tank.
The Institute for Economics and Peace said in its newly-released report — Mexico Peace Index 2019 — that the cost of violence is equivalent to about one-quarter of the country’s GDP, Mexico News Daily reported.
Record homicides in 2018 made the largest economic impact, accounting for half of the overall cost — a 15 percent increase from 2017.
There were more than 33,000 murders in Mexico last year, making 2018 the most violent year on record.
The think tank said that on a per-person basis the economic cost of violence was $2,200 — more than five times the average monthly salary of a Mexican worker.
“Violence and the fear of violence create significant economic disruptions,” the report said.
“While violent incidents incur costs in the form of property damage, physical injury or psychological trauma, fear of violence alters economic behavior. It does this primarily by changing investment and consumption patterns as well as diverting public and private resources away from productive activities and towards protective measures.”