Business leaders in Mexico are raising alarms about the country’s preparedness for natural disasters, warning that nearly one-third of the population and 30% of the economy are highly vulnerable to multiple types of natural hazards. The Business Coordinating Council (CCE), Mexico’s largest private sector organization, highlighted these concerns as it marked World Humanitarian Day on Monday by signing an agreement with Cenaced, an NGO focused on disaster and pandemic relief.

Francisco Cervantes, president of the CCE, emphasized that Mexico’s exposure to natural disasters such as earthquakes, floods, and hurricanes poses significant risks. He noted that approximately 40% of the national territory and one-third of the population are at risk, with about 30% of the country’s GDP vulnerable to three or more types of disasters. In an interview with El Economista, Cervantes revealed that 71% of the economy is at risk of suffering from at least two natural disasters.

This partnership between the CCE and Cenaced underscores the urgent need for enhanced disaster preparedness, particularly in light of the government’s 2021 decision to close the Natural Disasters Fund (Fonden) due to corruption concerns. The 2024 national disaster relief budget was also reduced from 18.2 billion to 13.5 billion pesos (approximately US $711 million), further compounding the challenges.

The increasing frequency and severity of natural disasters, exacerbated by climate change, are a growing concern. Cervantes pointed to Hurricane Otis, which struck Acapulco in October 2023 as the most intense tropical storm ever to make landfall on the Pacific coast, causing an estimated US $15 billion in damages.

Roberto Delgado, former president of Cenaced, highlighted that Mexico has experienced around 300 natural disasters since 2000, impacting over 40 million people. This year alone, the country has already faced two hurricanes and numerous forest fires. The new agreement aims to create a more resilient Mexico with a more efficient and coordinated emergency response system.

Cervantes also urged state governments to take greater responsibility by establishing their own disaster funds, stressing that local communities bear the brunt of these disasters. He pledged continued support from the business community in these efforts.