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Baja California Sur experiences best 2017 economic growth amid insecurity

Baja California Sur was the state with the highest economic growth during the second quarter of 2017 against the same period a year ago with 12.6 percent.

Even with the steady rise in economic growth, there is the issue concerning the recent wave of violence suffered by the region. This wave could impact in the medium and long term business and economic spirit, said Miguel Angel Ochoa of the Employers’ Confederation of the Mexican Republic (Coparmex) of Baja California Sur.

From January to September 2017, the average number of homicides registered in the Southern Californian entity was 50.7, while during the months of October and November the average shot up to 136. Cumulatively, during 2017 there were 723 homicides, 650 they are considered as intentional.

The business leader considered that tourism could be the most affected sector in the medium and long term due to the bad impression that violence generates in national and foreign visitors since currently, the services sector contributes 68.9 percent of the state GDP, of which at least 20 percent is generated by visitors.

In addition to highlighting the growing social decomposition generated by the absence of the rule of law, Ochoa considered that the most serious thing is that society is already beginning to distrust companies because they are related to corrupt political leaders.

Despite this, the leader trusted that small and medium businesses will continue investing.

“Our forecast for 2018 is positive. We are hoping that the consequences caused by organized crime and external issues such as the NAFTA negotiation and the US tax reform are not so serious,” he said.