Mexico City — The influential Mexican employers’ union Coparmex has issued a stark warning that rampant crime and violence are undermining the country’s economic prospects. In a new alert, Coparmex officials describe a “truly alarming panorama” of insecurity that is deterring business expansion and new investments. Extortion, in particular, has surged to record levels: more than 5,887 extortion cases were reported nationwide in the first half of 2025, an 83% jump compared to a decade ago. “We raise our voice at a reality that can no longer be ignored: the insecurity we face is alarming,” said Coparmex national president Juan José Sierra. “No investment or development project can thrive without minimum conditions of safety and legal certainty.”
According to Coparmex’s latest Monitor of Security report, extortion is now the fastest-growing crime in Mexico. The vast majority of cases go unreported — about 92.9% of extortions are not reported to authorities — because victims fear reprisals or lack faith in law enforcement. Businesses large and small are routinely targeted by organized crime groups demanding protection payments, as well as by phone scammers and corrupt officials. “This has businesses on their knees,” Sierra said, noting that many entrepreneurs feel helpless against threats.
The climate of lawlessness is having measurable economic effects. Coparmex, which represents thousands of companies across Mexico, conducted a survey showing that business confidence to invest has fallen by 12.8 percentage points among its members, largely due to insecurity, along with political uncertainty and weak rule of law. In other words, nearly one-eighth of normally optimistic business owners have scaled back or delayed investment plans, perceiving the risks as too high. “Insecurity remains one of the main obstacles for Mexico’s economic development, having reached the highest levels in history, and worse yet, 92.9% of extortion goes undenounced due to distrust and fear,” Sierra emphasized during a press conference.
The data behind Coparmex’s alarm are sobering. Official figures show that from January to June 2025, Mexico recorded the highest number of extortion incidents ever logged in a half-year period. Reports of robberies targeting businesses also remain high, with over 34,000 cases in the first half of 2025. That represents a slight 9.7% decline from the same period in 2024, suggesting some progress, but nearly 42% of these thefts were violent armed robberies. Kidnappings and homicides, while down about 15% from last year’s levels, are still concentrated in certain “red zones”: the states of Colima, Sinaloa, and Morelos have the highest murder rates, and 10 of the 20 most violent municipalities are clustered in just four states (Guanajuato, Michoacán, Morelos, and Guerrero). Such persistent violence in key industrial and commercial regions continues to scare off investors.
Business leaders say the government’s efforts so far have been insufficient to curb these threats. Coparmex’s Sierra pointed to a breakdown in law and order that “has the country on the defensive” and erodes confidence. In his view, “the rule of law is non-negotiable” for economic growth: companies will only invest, hire, and expand when they feel secure and when contracts are enforced impartially. Coparmex is calling on authorities at all levels to bolster security strategies, especially against extortion. The group plans to lobby federal lawmakers as they draft next year’s budget to allocate more resources for crime prevention and justice — particularly to implement a new national anti-extortion initiative that Mexico’s Congress approved this year. “No project can prosper without security and legal certainty. Confidence to invest, start a business, and grow is only possible in environments where the law is respected and impunity is fought decisively,” the Coparmex statement declared.
Jorge Peñuñuri, who heads Coparmex’s national Security and Justice Commission, noted that there have been some bright spots: the total number of homicide victims in early 2025 (approximately 13,090) was down 15.8% from the same period in 2024, indicating potential success of certain anti-violence measures. However, Peñuñuri warned about a “fuerte concentración de violencia” in specific regions. Colima, Sinaloa, and Morelos lead the nation with between 55 and 80 homicide victims per 100,000 inhabitants, and 10 of the 20 most violent municipalities are located in just four states (Guanajuato, Michoacán, Morelos, and Guerrero). In other words, a handful of areas are driving the national numbers, even as other places see improvement.
To address this, Coparmex is urging a two-pronged approach: targeted security operations in the hardest-hit zones, and structural fixes like purging corrupt officials and better funding for police and courts. The timing of Coparmex’s alert is significant. Mexico is gearing up for general elections in 2025, and business confidence is always sensitive to political changes. Coparmex members are effectively telling current and future officials that public safety must top the agenda if Mexico’s post-pandemic economic recovery is to stay on track.
Entrepreneurs have praised some government actions — such as deploying National Guard troops to guard highways and creating specialized anti-extortion units — but they argue these have not matched the scale of the problem. In the first half of 2025, 5,887 extortion cases were officially recorded, the highest ever, and yet Coparmex notes that 92.9% of extortions aren’t reported, meaning the true scope is far greater. Sierra emphasized that under-reporting stems from “desconfianza de la autoridad y miedo a represalias” — distrust of authorities and fear of retaliation. Improving that trust will require visible successes: arresting known extortionists, protecting witnesses, and swiftly punishing offenders.
As a concrete step, Coparmex announced it will work with legislators on the upcoming 2026 federal budget to ensure adequate resources for combating extortion and strengthening the rule of law. The business group will push for funding the implementation of a new legal reform that elevates penalties for extortion and better protects victims. They also plan public-awareness campaigns to encourage more businesses to report crimes, assuring them that Coparmex will advocate for their protection.
The message from Mexico’s business community is clear: the current levels of violence are economically unsustainable. In a country where private investment drives growth, having nearly one in eight businesspeople lose confidence in investing due to security and political concerns is a red flag. Unless the tide of extortion, robbery, and violence is stemmed, Mexico risks scaring away both domestic and foreign investment that it sorely needs for development.
President Claudia Sheinbaum’s administration responded to Coparmex’s alert by reiterating that security is a “shared priority.” A spokesperson highlighted government programs to hire more police, improve their training, and expand social programs in violence-prone communities. Critics, however, argue that deeper institutional changes are needed, such as reforming local police forces and ensuring state prosecutors aren’t overwhelmed or compromised.
For many Mexicans, Coparmex’s alarm simply echoes daily reality. Shopkeepers paying derecho de piso (extortion fees), trucking companies rerouting to avoid highway robbery hotspots, and families living under the shadow of cartel turf wars all know the cost of insecurity. The hope is that by quantifying the economic impact — a 12.8-point drop in investment enthusiasm, as Coparmex found — policymakers will be galvanized to act. As Coparmex’s Sierra put it, “No podemos seguir así” — we cannot continue like this. The coming months will test whether Mexico’s leaders and its new generation of officials heed that call and take decisive steps to restore peace on the streets and confidence in the economy.
