Mexico's Drug War and Informal Economy Cost Legitimate Businesses Billions Juan Carlos Cruz Vargas - Proceso
go to original January 30, 2014

The growing informal, cash-based economy and empowerment of crime in Mexico are causing companies to lose 105 billion-peso [7.9 billion USD] per year, revealed the Employer’s Confederation of the Mexican Republic (Coparmex).

In its weekly announcement, the organization directed by Juan Pablo Castañón indicated that investments have dropped 65 billion pesos [4.9 billion USD] due to crime and insecurity, “with all that that implies from the point of view of our ability to grow.

“If we then add in the impact of unfair competition from the informal sector over the formal economy, which represents around 40 billion pesos [3 billion USD] per year, we begin to have an idea of the dimension and destructive ability that crime and the absence of the rule of law have over the economy and opportunities for Mexicans,” Coparmex declared.

Read the rest at Mexico Voices

Translated by Julie Kawamura

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