Chile, once known for its safety, now faces a serious crime problem that costs the country $8.2 billion each year.
This loss equals 2.6% of Chile’s total yearly economic output, according to a study by the Centro Latinoamericano de Políticas Económicas y Sociales at Universidad Católica de Chile.
Many businesses in cities like Santiago are struggling. La Piojera, a famous bar in the city center, now closes much earlier than before because people feel unsafe at night. Its manager says sales have dropped by 60%.
Other restaurants and bars try to keep customers by offering late-night deals, but most people still leave early. This change in habits hurts business and reduces jobs. Crime is not just about theft.
The number of murders has gone up fast—from 2.32 per 100,000 people in 2015 to 6.0 in 2024. This is still lower than in many other Latin American countries.
However, the quick rise has shocked Chileans and worsened the problem for the economy. When crime goes up suddenly in a country that was once safe, people and businesses feel it more.
Official data shows that most murders now happen in public places, such as streets and parks. More than half involve guns, and organized crime groups play a bigger role. Nearly 37% of violent crimes are now linked to these groups.
The government is taking action. It plans to spend 2.7% more on public safety next year, hire 1,300 new police officers, and invest in better border controls. The “Streets without Violence” program aims to put more police on the streets and make public spaces safer.
For many Chileans, the cost of rising crime is not just about money. It changes how they live, where they go, and how safe they feel. Businesses lose money, people lose jobs, and the country’s reputation for safety is at risk.
These facts, based on official studies and government data, show how crime is now shaping both Chile’s economy and daily life.