Organized crime hinders growth in Mexico and all of Latin America

Organized crime hinders economic growth in Mexico, as is all over Latin America, a World bank report Published on Monday. With the expected economic growth of 2.1% in 2025 and 2.4% in 2026, the Latin America growth rate in every region is the lowest in the world.

The World Bank's report also showed that murse in Latin America and in the Caribbean “go far beyond the others in the world”.

While the population of Latin America is around 9% of the global total, according to the report, it makes a third of all murders. In the 2000s to eight times higher (23 vs. 3), the gap spread from a rate of 5.4 -higher in the 2010s than in the world average (22 opposite 4.1).

“Organized crime is one of the most urgent problems in the region and must be at the center of every conversation about the development,” the report said.

The report emphasizes that global demand for cocaine, illegal gold and migrant trade has led to an increase in organized crime in the past ten years. It also quotes the restructuring of cartels and other groups due to the repression of the government and the increased availability of weapons.

The World Bank describes Mexico as the third highest “crime assessment” in the world behind Colombia and Myanmar.

In the cases of Mexico and Colombia, the Covid 19 pandemic “criminal groups, legitimacy and power in areas in which the state was not present were able to improve their business and make it easier to stop impoverished population groups,” the report said.

Short -term stability is based on strengthening the capacity of prisons, police forces and judicial systems. At the same time, according to the bank, the nations have to work to understand what motivates young people to join organized crime groups.

The report recommends that the region should concentrate on the media on the media on the improvement of education systems and labor markets.

Educational and labor market indicators

The report shows several important business indicators for Latin America and Mexico.

It shows that the trust of consumers and the business in Mexico remained quite stable in the pre- and post-pandemy periods according to an OECD index.

While most countries in Latin America were confronted in Brazil, Colombia and Mexico in Brazil, Colombia and Mexico between 2018 and 2023, “the poverty control was accelerated, largely due to improved labor markets”.

The contribution of household sources to changes in the poverty rate in Mexico between 2013 and 2018 was zero, but in the period 2018 to 2023 the effects of these inputs were negatively postponed by up to 7%.

With regard to work and income trends, “the relative tightness of the labor markets after pandemic has accelerated the pace of real wage growth for most countries, especially in Mexico, Colombia and Brazil.”

According to the report, the annualized real wax growth was 6%between 2021 and 2023.

The report also evaluates the level of education in various segments of society. In Mexico, the achievements between medium and advanced and advanced and advanced in informal workers rose to the second quarter of 2024 from 2018.

Another economic indicator that has shifted significantly in the past two decades is the uncertainty of trade policy (TPU).

The TPU remained stable from 2012 to 2015, with less than 1% of the TPU news articles mentioned. However, as a certain tariff between 2017 and 2019, it was introduced to a maximum of more than 2% of the items before they stabilized again.

After the US presidential election in 2024, the TPU rose to almost 4% and rose even more dramatic to almost 14% in the first months of 2015.

With reports from El Economista