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

Fish for free

No license is required to ice fish on Family Day weekend

Students to teach principles of self-awareness

Fox Run students will be sharing “U Rock”, a program designed to instill kindness and compassion

Reward offered to find man charged in 2006 murder

RCMP are offering up to $5000 for information leading to the arrest of Kevin Brown

Background checks required for retail cannabis locations

Strict rules and regulations for retail locations was announced at a press conference this morning

Adults and youths charged in multiple armed robberies

Maskwacis and Wetaskiwin RCMP solved multiple armed robberies investigations

WATCH: Red Deer celebrates one year out from 2019 Canada Games

Community gathers at Great Chief Park to commemorate Games milestone

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

#Metoo movement causing confusion in many men, fear of missteps with women: experts

Being painted by the same sweeping brush as those alleged to have mistreated women has angered men

Liberals to dig deeper, aim higher on gender equality in 2018 federal budget

Finance Minister Bill Morneau said the budget would include measures to boost women in the workforce

Trudeau family arrives in India for state visit

Seven-day visit includes meeting with Indian Prime Minister Narendra Modi

Military seeks DNA experts to help ID missing war dead

Federal program recovers, identifies and arranges burials for Canada’s nearly 28,000 missing war dead

PHOTOS: CP Rail train derailment near Ellerslie Road

A train derailed on the south end of Edmonton closes streets

Most Canadians believe journalism plays critical role in democracy: poll

Survey suggests 94 per cent of Canadians feel journalism plays ‘important’ part

13 Russians charged in Mueller investigation

Special counsel alleges illegal meddling in the 2016 U.S. presidential election

Most Read