Study finds drug war costs Mexico as much as 13% of GDP

The total economic impact of the violence in Mexico in 2015 was $134 billion.
The total economic impact of the violence in Mexico in 2015 was $134 billion.

By Martin Markovits / CCTV

The Mexico Peace Index, an assessment of the cost of violence on the country’s economy, said the total economic impact of the violence in Mexico in 2015 was $134 billion, around 13 percent of the country’s GDP.

That comes to 7,525 pesos ($1,105) per Mexican citizen, which is the equivalent of about two months’ wages for an average Mexican worker, a high amount in a drug war that has killed nearly 160,000 people.

The study factors in not only extortion and kidnapping but also indirect costs like deferred investment and the potential flight of capital.

“The people don’t understand that the violence affects all of our productive sectors. It doesn’t matter what sector, tourism or industry. If you get on a bus and they rob you that means we are all affected,” Alexei Chevez, a security analyst said.

http://www.cctv-america.com/2016/05/16/study-finds-drug-war-costs-mexico-billions

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