The Institute for Economics and Peace says terrorism has killed 10 times more people worldwide in 2014 than it had in 2000. That\u2019s the human cost. But terror also causes a downward pressure on economy. Economic growth & terrorism Terror attacks lead to both short-term as well as medium to long term effects. Tourists usually refrain from visiting a city that\u2019s been attacked. And locals avoid using public transport for a few days. They also tend to temporarily reduce consumption.But terror attacks also lead to increased defence and security spending. And that reduces economic growth.<\/p>\n
A recent analysis by Moody\u2019s says that terrorist attacks significantly weaken economic activity, with long-lasting effects. But perhaps worst of all is that the negative economic impact of an attack continues for years. A case in point is Iraq\u2019s economy. Moody\u2019s says had the country been terror free between 2008 to 2013 , its GDP could have been 8.2% higher. Economist Kerem Alkin says decreasing the cost of terrorism would allocate more money to spend on infrastructure – and that would lead to higher growth. And as for economies that depend on tourism…terror attacks can hit even harder.<\/p>\n
Recent examples are Egypt and Tunisia. But interestingly, tourists continue to visit the US – even though shootings in the US kill more people a year than terrorism.So the effects MAY vary depending on factors specific to a given country – like the intensity and persistence of terrorist activity or the country\u2019s level of political stability.<\/p>\n
Are markets numb to terror? Then there\u2019s the reaction of the markets. After 9\/11, Wall Street shut for a week<\/p>\n","protected":false},"excerpt":{"rendered":"
The Institute for Economics and Peace says terrorism has killed 10 times more people worldwide in 2014 than it had in 2000. That\u2019s the human cost. But terror also causes a downward pressure on economy. Economic growth & terrorism Terror attacks lead to both short-term as well as medium to long term effects. Tourists usually …<\/p>\n","protected":false},"author":2,"featured_media":3095,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[750,752,751,72],"class_list":["post-3094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interview","tag-economic-growth","tag-impact","tag-negative","tag-terrorism"],"yoast_head":"\n