- Chile is experiencing economic losses averaging around $8.2 billion a year due to rising crime.
- Businesses like La Piojera are suffering, seeing sales drop by 60%.
- Murder rates in Chile are rising, which is changing social behavior significantly.
Rising Crime Takes a Toll on Local Businesses
Rising crime is a persistent issue for Chile, especially impacting local businesses and the economy. According to a new report from CLAPES UC, a research center associated with Universidad Catolica, Chile is losing around 2.6% of its gross domestic product annually, which translates to an alarming $8.2 billion a year. This significant economic loss stems from rising crime rates affecting operations—like at La Piojera, a historic bar in downtown Santiago, where sales have dropped due to earlier closing hours and a cautious clientele.
Management Struggles to Adapt to New Norms
The manager of La Piojera, Mauricio Gajardo, has noted that his sales have plummeted by a staggering 60%. The bar, which used to be bustling with patrons past midnight on weekends, now often closes its doors around 8:30 p.m. despite some municipal security support. In response to this downturn, nearby businesses are implementing strategies like late-night discounts to retain customers, a crucial effort as noted by Cristian Gonzalez, manager of another bar, who reveals how business volumes drastically fall after 10 p.m.
Social Changes Born from Rising Violence
Violence in Chile has nevertheless seen a troubling rise in murder rates, reaching 6.0 per 100,000 in 2024, up from just 2.32 per 100,000 in 2015. While still lower than in other Latin American countries, the effect is notably felt in Chile due to its previously lower crime baseline. University student Jose Tomas Rodriguez highlights that these trends have led his social circle to alter their routines—now opting to go out earlier or during the daytime, illustrating how the rise in crime has shifted cultural habits considerably.
In summary, Chile faces a troubling intersection of rising crime and economic decline. Local businesses like La Piojera are struggling, showing significant drops in sales and early closures influenced by safety concerns. With changing social habits among citizens and crime rates increasing, the ramifications for the economy could be severe if not addressed soon.