Puerto Vallarta, Mexico – Violence in Mexico continues to exact a heavy toll on the nation’s economy, with estimated costs reaching a staggering 4.9 trillion pesos ($245 billion) last year. This represents a notable increase from the previous year, according to the latest findings from the Institute for Economy and Peace (IEP), a nonprofit global research and analysis center headquartered in Sydney, Australia.
The IEP’s Mexico Peace Index, released on Tuesday, provides a comprehensive overview of the impact of violence on the country’s economic landscape. The report details the direct costs of violence, including expenditures on prevention measures, as well as the long-term economic losses stemming from acts of violence. Moreover, it highlights the opportunity costs associated with diverting resources away from productive endeavors towards violence containment efforts.
In 2023, the economic burden of violence amounted to 4.9 trillion pesos, translating to approximately 37,430 pesos per capita. Analysts at the IEP underscored that this figure surpasses more than double the average monthly salary of a Mexican worker.
While there have been some improvements in Mexico’s peace and security landscape, evidenced by a 5.3% decrease in the homicide rate in 2023 – marking the fourth consecutive year of decline – challenges persist. Homicides remain a pressing concern, with over 30,500 victims reported last year. Mexico’s homicide rate, at 23 homicides per 100,000 inhabitants, ranks among the fourteenth highest globally.
Despite recent positive trends, the IEP notes a concerning deterioration in peace levels since 2015, with organized crime and homicide rates notably higher compared to nine years ago. According to the report, organized crime groups have shifted focus towards activities such as extortion and trafficking of synthetic opioids like fentanyl, amid declines in traditional drug markets.
The surge in fentanyl seizures along the Mexico-U.S. border is indicative of this trend, with a staggering 900% increase reported between 2019 and 2023.
Furthermore, the report sheds light on the alarming levels of violence targeting law enforcement officials and individuals for political reasons. In 2023 alone, more than 170 politicians, government officials, and their relatives fell victim to violence, marking the highest recorded number to date. The IEP emphasizes the heightened risks faced by police officers, noting that it is nearly four times more perilous to be a member of law enforcement than an ordinary civilian. Since 2018, over 2,600 police officers have lost their lives in the line of duty.
As Mexico grapples with these multifaceted challenges, addressing the root causes of violence and enhancing law enforcement capabilities emerge as critical priorities to foster lasting peace and stability in the nation.
Puerto Vallarta, Mexico - Violence in Mexico continues to exact a heavy toll on the nation's economy, with estimated costs reaching a staggering 4.9 trillion pesos ($245 billion) last year. This represents a notable increase from the previous year, according to the latest findings from the Institute for Economy and Peace (IEP), a nonprofit global research and analysis center headquartered in Sydney, Australia.
