Estimated GDP per capita cost of terrorism in the Benelux 2013-2016, by country

Estimated GDP cost per capita of terrorism in Belgium, the Netherlands and Luxembourg (Benelux) between 2013 and 2016 (in euros)*

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Release date

May 2018


Belgium, Luxembourg, Netherlands

Survey time period

2013 to 2016

Supplementary notes

* The source adds the following information: "Terrorist attacks may destroy factors of production. Crucial capital such as transport infrastructure may be destroyed, and individuals of working age killed or injured. These labour and capital inputs are crucial to producing goods and services, their loss therefore affects Gross Domestic Product (GDP).

Terror also tends to divert public resources away from economic production to national security. Unsurprisingly, the share of government expenditure grows when terror attacks occur, as public spending on defence and security increases in response. In order to spend more on security, countries either raise taxes or shift their budget spending to potentially less growth-enhancing defence and security expenditures, which may harm long-term growth

Terrorist attacks slightly increase consumption. Although there is no clear indication of the mechanisms behind this increase, it is believed that terrorist attacks may heighten awareness of individual mortality. The psychological impact may trigger an impulse in individuals to save less and consume more in the present time.

Terrorism also induces a higher level of fear and uncertainty affecting society more widely. This uncertainty distorts consumers' choices regarding investment, savings and consumption. Inflow of resources from other countries may also be diverted to countries that are considered safer. This impacts foreign direct investments, as discussed in the section on economic integration."

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