The Global Economic Impact Of Terrorism

Terrorist attacks lead to billions of dollars of economic losses every year. The 2017 Global Terrorism Index found that the impact fell by seven percent in 2016 for the second consecutive year. Despite that, losses still amounted to a grim $84 billion last year. In the years after the 9/11 attacks, losses generally fluctuated until they hit a peak in 2007, mainly due to the deteriorating security situation in Iraq. Coinciding with the rise of ISIS, there was a further surge in losses since 2012, and they reached $104 billion in 2013.

Countries in a state of conflict experience the highest economic impact from terrorism with the majority located in the Middle East and North Africa, sub-Saharan Africa and South Asia. Last year, Iraq had the highest economic losses as a share of GDP at 24 percent while Afghanistan's economic impact came to 13 percent of GDP.