Mexico faces a harsh and serious reality: insecurity is stifling economic growth, driving away investment, and crushing the hopes of thousands of Mexicans who need formal, well-paying jobs.
The CEO of BBVA Mexico, Eduardo Osuna Osuna, revealed that insecurity costs Mexico 0.5% of all the money the country produces each year; it also hinders investment and the creation of formal jobs registered with the Mexican Social Security Institute (IMSS).
“Security is another variable that clearly inhibits investment and growth. Studies conducted by the bank’s team of economists indicate that insecurity costs us around 0.5% of growth per year,” he said.
This figure is equivalent to more than 1.759 trillion pesos, an amount sufficient to triple the pensions of over 10.3 million senior citizens, who currently receive 6,200 pesos, when they could receive 18,600 pesos every two months.
“Insecurity is an issue that must be addressed, not only because of the impact it has on Mexicans, which is the most relevant, but also because it has a serious economic impact,” concluded Eduardo Osuna.
During a year-end meeting with journalists, the director of BBVA Mexico emphasized that without investment there are no jobs, and without jobs there is no consumption, no growth, and no conditions to improve the economy for millions of families.
He pointed out that beyond the 15% annual growth and a record $41 billion in the third quarter of this year, as reported by official figures, it is essential that domestic private investment overcome the obstacles it faces due to insecurity.
He emphasized that, while foreign investment shows positive and significant numbers, “the most important thing is to boost domestic private investment,” which is the most important due to its size.
“If we look at the data, domestic investment is eight to ten times larger than foreign investment; therefore, if domestic private investment doesn’t improve, it will be very difficult to achieve higher levels of growth” and more jobs, Eduardo Osuna stated.
Source: publimetro
