Mexico water crisis threatens up to 5% of GDP

Experts warn that Mexico's water crisis could impact between 4% and 5% of the country's Gross Domestic Product (GDP). Raúl Rodríguez, president of the Water Advisory Council, noted that while the global water crisis could cost 1% of world GDP, many individual nations face negative impacts ranging from 2% to 10%.

There is a significant gap in necessary funding for the water sector. International organizations recommend annual investments equivalent to 1.3% of GDP. To meet needs, Mexico would require approximately 350 billion pesos (about $20.5 billion USD) annually for at least a decade. This contrasts with the 186 billion pesos (nearly $11 billion USD) currently planned by President Claudia Sheinbaum's administration through 2030.

Jorge Arriaga of the UNAM Water Network and the UNESCO-sponsored Regional Water Security Center warned that water scarcity acts as an economic brake. A prolonged crisis could lead to production restrictions, increased costs, and supply chain disruptions.