2007 Tabasco Flood - Economic Consequences

Economic Consequences

One week after the severe flooding, the capital of the state was in bankruptcy in part because flooding has affected various settlements. According to the local Chamber of Commerce, almost 15,000 establishments in downtown Villahermosa suffered losses of 100% in their infrastructure and inventories. This situation might cause a severe recession in the local economy, because many of these business beside having lost all their invested capital, have obligations with their suppliers, payments delayed with the government and workers' wages.

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