Increased criminal activity has led to heightened insecurity throughout Mexico, especially in southwestern states. As a result, the economy lost nearly 13 percent of its GDP in 2015 from theft, extortion and other illicit activities; authorities lack a strategy to provide long-term stability.
Organized crime groups, commonly referred to as drug-trafficking organizations (DTOs), operate throughout Mexico and are the primary threat to business activity in the country. DTO operations have led to heightened insecurity across a majority of states, especially as groups diversify their illicit activities to include illegal mining and logging, reselling pirated goods, kidnapping and extortion. Over time, DTOs have also diversified drug production by increasing the production of heroin and methamphetamine, as demand for those drugs has surged in the U.S. while cocaine use has steadily decreased and U.S. states move to legalize the cultivation and consumption of marijuana. Methamphetamine and heroin are relatively easy to produce in Mexico and Central America, resulting in cheaper production costs when compared with importing cocaine or precursor products from South America. The most dangerous areas generally remain the Mexican states with infrastructure that facilitates access to U.S. illegal drug markets, the import of cocaine and precursor chemicals, and domestic production. Although billions of dollars have been spent to combat DTOs, the drug trade and its related criminal activities remain the primary drivers of violence, often prompting vicious turf battles between rival groups and forceful confrontations with police.