Skip to content
Subscriber Only
Markets
Economics

Graft Runs So Deep in Mexico City That Crackdown Crimps Economy

  • Construction grinds to a halt under extra government scrutiny
  • Banorte sees measurable blow to growth rate of national GDP
Pedestrians stand in front of a halted construction site in Mexico City.
Pedestrians stand in front of a halted construction site in Mexico City.Photographer: Luis Antonio Rojas/Bloomberg

Construction activity in Mexico City has come grinding to a halt this year as a corruption crackdown emerges as a new threat to national economic growth.

Mayor Claudia Sheinbaum, a close ally of President Andres Manuel Lopez Obrador, is looking to clean up potential irregularities in zoning, land use and project awards. As a result, her administration has dramatically cut back on building permits in a city that plays an outsize role in the nation’s economy.