MEXICO CITY, Aug. 25 (Xinhua) -- Mexico's business sector on Sunday called on the government to strengthen and modernize the country's crime-fighting agencies as a way to spur economic growth.

Crime scares away investors, the Private Sector Center for Economic Studies (CEESP) said in its weekly report.

In the first seven months of this year, the crime rate rose 5.4 percent over last year's same period, according to the center, part of the Business Coordinating Council (CCE), Mexico's largest business confederation.

"In addition to threatening people's lives, (violent crime) generates uncertainty and burdensome operational costs for already established companies and for installing new businesses," said the report.

"It hinders investment, competitiveness, job creation and the country's growth," the report added.

"Eradicating impunity and strengthening the rule of law should be an immediate goal," said the center.

Mexican President Andres Manuel Lopez Obrador, who took office on Dec. 1, established the National Guard as a new crime-fighting force earlier this year.