Crime Affects Salvadoran Economy
Friday, May 27, 2011
The costs generated by crime are equivalent to 11% of gross domestic product (GDP).
According to a recent World Bank report, crime and violence have an impact on economic growth not only in terms of loss of wages but it also affects the investment climate and diverts scarce government resources to strengthen the application of justice rather than promoting economic activity."

An article in Laprensagrafica.com notes: "The impact is serious. According to the World Bank, if El Salvador managed to lower is homicide rate, which currently stands at 70 per 100,000 population, by at least 10%, - this would not only help to improve the quality of life of the population in terms of security, but would also boost annual economic growth by an additional to 1%. "
Source:laprensagrafica.com
Source:laprensagrafica.com
More on this topic
How Much Does the Region Lose in Crime?
January 2020
Because of factors such as business closures and lack of opportunities, it is estimated that criminal activity costs Honduras and El Salvador 16% of GDP, and in the case of Guatemala, its losses could amount to 7% of its production.
In Central America, the human costs of crime remain one of the highest in the world. El Salvador, Guatemala, and Honduras—referred to as the Northern Triangle— account for about four-and-a-half percent of homicides worldwide despite only having about one-half-percent of the world's population.
Growing Cost of Insecurity in Guatemala
March 2016
Companies have to allocate up to 15% of expenses to security services, as a result of the growing violence in the country.
A company wishing to operate in Guatemala has to allocate between 8 to 15% of its expenses to security in order to keep operating. The figure was provided by Victor Guillen, manager of purchases, imports and exports at Dagas, and published by Elperiodico.com.gt, who revealed that his company earmarked Q250 thousand ($32,000) per month for the security of its plants, trucks and workers.
Criminal Violence and Corruption Curbs Business
June 2013
The phenomenon affects much of Latin America, whose countries spend on average 8% of their GDP on security costs.
That was the conclusion reached during the forum "Connecting businesses as partners for prosperity with security in the Americas", organized by the Organization of American States (OAS) and the private sector, under the framework of the Guatemala Investment Summit.
Crime and Violence: A Staggering Toll on Central American Development
April 2011
Growing crime and violence in Central America not only have an immediate human and social toll, they also pose a tremendous threat to development potential in the region.
Today, it is estimated that these sources of instability may decrease regional Gross Domestic Product (GDP) by 8 percent, once health, institutional, private security, and material expenses are accounted for.
Key entities
World Bank
Countries
El Salvador
Insight
Public safety Economics
RELACIONADO
Public safety
citizen insecurity
crime
organized crime
security costs
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