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

Motorist dies near Ponoka after loose tire collides with vehicle

Ponoka RCMP seek assistance in locating vehicle belonging to the tire

Keeping track of our feathered friends in Buffalo Lake area

Buffalo Lake Nature Club Christmas Bird Count 2017

Almost 100 kgs of suspected cocaine seized at Coutts border crossing

84 bricks of suspected cocaine seized from California residents’ vehicle; largest recorded seizure.

Big Hank hits Stettler Dec. 1

Big Hank’s Tribute to the Blues Songs of Christmas

‘I Love First Peoples’ shoebox campaign comes to Stettler

Box of gifts brings joy to children, helps reconciliation

Big Hank hits Stettler Dec. 1

Big Hank’s Tribute to the Blues Songs of Christmas

Researchers claim the ‘man flu’ does exit

Review of scientific studies suggests ‘man flu’ may be more intense: researcher

Trudeau appoints Supreme Court chief justice

Prime Minister Trudeau appoints Richard Wagner as Supreme Court chief justice

WestJet Christmas video turns children’s wishes into reality

This year’s annual video took a new spin on the 12 days of Christmas

Firefighters protect seaside California towns as blaze rages

A flare-up on the western edge of Southern California’s largest and most destructive wildfire sent residents fleeing Sunday

Putin declares victory on visit to air base in Syria

Declaring a victory in Syria, Putin on Monday visited a Russian military air base in the country and announced a partial pullout of Russian forces from the Mideast nation.

Pipe bomb explodes in NYC subway

Pipe bomb strapped to man explodes in NYC subway, injuring 4

Toronto FC to hold victory parade following MLS Cup championship

Toronto FC to hold downtown victory parade following MLS Cup championship

Canada’s only commercial spaceport hopes to launch 12 rockets per year

Nova Scotia’s rocket launch site hopes to eventually host 12 launches per year

Most Read