The Price of Crime and Violence in Central America

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.

Tuesday, August 26, 2008

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.
When compared to the GDP of each country, these numbers represent a surprisingly high portion of GDP, with some 11% for El Salvador, with 10% in Nicaragua, and 3.6% for Costa Rica.

More on this topic

Costa Rica: Quarterly GDP Up 3.4%

July 2017

In the first quarter of the year, household final consumption and private construction investment accounted for most of the annualized 3.4% increase in GDP.

From a report by the Central Bank of Costa Rica:
In the first quarter of 2017, economic activity, measured by the cycle trend of the real Gross Domestic Product (GDP), grew at an annualized rate of 3.4%, mainly reflecting higher final household consumption expenditure and to a lower extent, an increase in investment in private construction, since external demand showed a moderation in its growth.

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

May 2016

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.

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.

Central America: Highest Homicide Rate in the World

April 2014

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.

GDP vs. National Disposable Income

May 2012

In Costa Rica, 7% of GDP is not enjoyed in the country, but it goes abroad as profits of foreign companies.

In 2011, the Gross Domestic Product (GDP) in Costa Rica reached $48.585 billion, but the earnings of the productive activity of foreign firms in the country should be deducted from that amount , which take to their countries of origin $3.4 billion.

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