El Salvador: Cost of Violence is Equal to 16% of GDP

In 2014 the economic cost of violence in El Salvador exceeded $4 billion, while the opportunity cost of production and unmade investment was 4.8% of GDP.

Monday, May 2, 2016

From a press release issued by the Research Network at the Central Bank (REDIBACEN):

Today the Research Network at the Central Bank (REDIBACEN) presented the results of the research report entitled "Estimating the Economic Cost of Violence in El Salvador", carried out by the researcher economists Margarita Penate, Kenny de Escobar, Arnulfo Quintanilla and Cesar Alvarado.

The study estimated that the economic cost of violence to the government, households and Salvadoran companies was US $4.0263 billion, equivalent to 16.0% of gross domestic product (GDP) in 2014.



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A report by InSight Crime highlights the homicide rate registered in Costa Rica in 2017, which was 12.1 per 100,000 inhabitants, the highest number in its history.

The report indicates that Costa Rica is a country that has traditionally been considered "peaceful," and in respect to the escalation of the homicide rate, an increase that local authorities attribute to organized crime, the report indicates that " ... lack of retrospective and a vague methodology is weakening the authorities' attempts to attribute blame to organized crime. "

Central America: Highest Homicide Rate in the World

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Drug trafficking and gangs are the main factors responsible for intentional murders in the most violent countries in the world: Honduras, Belize, El Salvador and Guatemala.

According to a report by the United Nations Office on Drugs and Crime at the United Nations (UNODC), in 2012 Honduras recorded 90.4 killings per 100,000 inhabitants.

Crime and Violence in Central America

March 2009

Central America is literally being occupied by criminal forces and the result is not only physical but also economic insecurity for its citizens.

Crime and violence, especially that which is generated by organized crime, drug trafficking first, are increasing in the region, while the states seem overwhelmed by the problem.

The Price of Crime and Violence in Central America

August 2008

In an effort to curb violence, Central American governments spent some $6.5 billion in 2006, or nearly 7.7% of the sub-region’s GDP.

The highest spending rates are for Guatemala, with a bill of US$2.29 billion, followed by El Salvador with US$2.10 billion. Costa Rica and Nicaragua registered significantly less with US$ 791 million and US$529 million respectively.

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