The economic repercussions of violence in Latin America are significant, as highlighted by a report from María José Chaguaceda, an analyst from the Spanish Export Credit Insurance Company (Cesce). According to her, the violence prevalent in the region is responsible for a loss of more than 4% in the GDP, which in turn hampers investment and productivity across various sectors. This alarming statistic underscores the necessity of addressing security concerns to pave the way for potential economic recovery and growth in the region.

Chaguaceda made these comments during a session titled 'Country Risk: A Look at the Global South,' where she examined how violence acts as a constraint on economic growth. She pointed out that while the forecast for Latin America's economic growth for the year stands at 2.2%, improvement in security measures could lead to a much higher rate. The stark contrast between the violence statistics and global averages demonstrates the urgency for policymakers to prioritize safety and security as fundamental conditions for economic development.

Latinoamérica harbors 8% of the world's population but is disproportionately responsible for 33% of the global homicide rate, which translates to approximately 130,000 killings annually. This results in an astounding homicide rate of 25 per 100,000 inhabitants, more than triple the global average of seven. These figures not only reflect an ongoing public safety crisis but also indicate a critical need for effective strategies that address the underlying causes of violence to foster a more conducive environment for sustainable economic progress.