Mexico tallies the cost of deadly earthquake

The earthquake “has the potential to be one of Mexico’s costliest natural catastrophes.”

Mexican government officials are tallying up the economic losses of the magnitude 7.1 earthquake that caused widespread damage in the capital, but for the manager of a downtown restaurant, the result is already all too clear.

Sitting in the entrance of his Guapa Papa restaurant Monday, surrounded by caution tape, Antonio Luna said: “This is a bust. It’s already closed due to structural damage to the building.”

He had to let go the three dozen employees at the 1950s-themed restaurant and is just trying to salvage whatever furniture and equipment wasn’t damaged.

“In the end the company let everyone go because it couldn’t continue having expenses,” Luna said.

Related: The search for survivors continues in Mexico

Moody’s Investors Service said in a report Monday that the Sept. 19 earthquake that has killed at least 326 people in the capital and nearby states “has the potential to be one of Mexico’s costliest natural catastrophes.”

Alfredo Coutino, Latin America director for Moody’s Analytics, said they were still collecting data on losses, but a preliminary estimate was that the earthquake could knock 0.1 to 0.3 percentage point off growth in Mexico’s gross domestic product in the third and fourth quarters.

For the full year, the impact on gross domestic product should be about 0.1 per cent. “The impact on the year’s growth will be small, particularly considering that the reconstruction work will compensate for some of the total loss in activity during the fourth quarter,” Coutino said.

Money is expected to pour into the economy as Mexico City and the federal government tap their disaster funds. As of June, the city’s disaster fund stood at 9.4 billion pesos (more than $500 million), making it slightly larger than the national fund, according to a Moody’s Investors Services report.

Of course, the national fund also has to deal with recovery from the even stronger Sept. 7 quake that has been blamed for nearly 100 deaths, mostly in the southern states of Oaxaca and Chiapas.

There will be months of work ahead from demolition to repairs and reconstruction.

Mexico City Mayor Miguel Angel Mancera said that 360 “red level” buildings would either have to be demolished or receive major structural reinforcement. An additional 1,136 are reparable, and 8,030 buildings inspected so far were found to be habitable.

At least 38 buildings, including apartments and office buildings, collapsed during the earthquake.

Mexico’s education ministry also has 1.8 million pesos to spend on school repairs. In Mexico City alone, only 676 of the city’s 9,000 schools had been inspected and cleared to resume classes, Education Secretary Aurelio Nuno said Monday.

AIR Worldwide, a Boston-based catastrophe modeling consultant, provided a wide range for industry-insured losses, but noted they would be only a small part of the total economic losses. It put the insured losses at between 13 billion pesos ($725 million) and 36.7 billion pesos ($2 billion).

Related: 50,000 evacuate as Bali volcano swells

A graceful traffic roundabout encircled by restaurants, cafes and shops is now a sprawling expanse of medical tents, piles of food and other relief supplies, and stacks of building materials. While relief work went on outside Monday, men were busily wrapping furniture in foam and plastic inside the Antiguo Arte Europeo store.

Stone panels on the building’s facade appeared cracked or were altogether missing. Saleswoman Luisa Zuniga said the owners were waiting for civil defence inspectors to certify there was no structural damage to the building before reopening to the public.

Meanwhile, they were moving furniture that could still be sold to their other branches.

“Then we’ll see how long it takes to fix everything,” she said. “It is important to get back to work.”

Edgar Novoa, a fitness trainer, went back to his job Monday after working as a volunteer following the earthquake. Around midday, he stopped his bicycle at a cleared foundation where a building of several stories had stood near his home.

He knelt and prayed while others left flowers and candles at the site.

___

Associated Press photographer Moises Castillo contributed to this report.

Christopher Sherman, The Associated Press

Just Posted

Abbotsford man charged with two child porn offences

Investigation against Jeremy Allen Willms, 42, began in April

Andy Sidhu appointed new chancellor at UFV

Third person to take on university role, first established in 2008

VIDEO: JRfm’s Holiday Fun Day sets up shop again at Langley Events Centre

Great music accompanies family fun as JRfm raises diapers and donations for Basics for Babies.

Abbotsford lawyer suing The Bay claims he was assaulted by security guard

Greg Lanning says incident started when he asked to have label removed from pants

Large drug bust yields fentanyl and carfentanil

Abbotsford Police launch investigation after spike in overdose deaths

Me Too At Work: Sexual assault and harassment in the B.C. workplace

Introducing an in-depth look at who is affected and what can be done

Quarter of students were away sick at Maple Ridge elementary school

Students and teachers at Maple Ridge school away with colds, flu.

Suspect in Revelstoke standoff killed himself: RCMP

Mohammadali Darabi, suspect in the Calgary homicide of his roommate, was stopped in Revelstoke

VIDEO: Salt Spring Islanders ferry piano to their floating home

Everyone enjoys a little music on the water, but not everyone has a piano on their boat

Clinton visits Vancouver, applauds Trudeau, celebrates Democrats’ win in Alabama

Clinton told crowd she cheered when Prime Minister Justin Trudeau appointed the country’s first gender-balanced cabinet.

Frustrated federal workers rally against Phoenix payroll system at B.C. MP’s office

Some employees out tens of thousands of dollars with ‘no end in sight’

Bomb detonated in Kamloops neighbourhood

Kamloops RCMP are investigating after an improvised explosive device was detonated Wednesday morning

No More Shootouts: Strong defence will be Canada’s backbone at world juniors

Head coach doesn’t want a situation where a hot goalie or a lucky bounce can determine a team’s fate

Maple Ridge becomes the mysterious haunt of the X-Files

Stars of sci-fi series show up in Memorial Peace Park

Most Read