MEXICO CITY (Xinhua) – Cutting crime in Mexico could encourage more investment, leading to higher economic growth, a private sector think tank said last Sunday.
“That is why it is indispensable to guarantee security,” the Private Sector Centre for Economic Studies (CEESP) said in its weekly report.
If investment does not increase, it is unlikely that the country’s economic situation will see an improvement this year, said the centre, which is part of the Business Coordinating Council (CCE), Mexico’s largest business confederation.
The centre called on President Andres Manuel Lopez Obrador to prioritise measures to “drastically” reduce violent crime and extortion to promote growth and wellbeing.According to the latest official figures, Mexico’s gross domestic product (GDP) shrank 0.1 per cent in 2019, contracting for the first time in a decade amid rising violent crime.
Latin America’s number two economy, after Brazil, Mexico could grow between 0.8 and 1.8 per cent in 2020, the central Bank of Mexico (Banxico) has forecast.
In 2018, Mexico’s GDP expanded by 2.1 per cent.