The Financial Cost of Terrorism in Europe

World Economic Forum, 2018

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Terrorism hurts the financial well-being of individuals, businesses and nations in significant ways.

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Terrorism has profound, multidimensional effects on individuals and society as a whole. For the European Union, the economic losses just from foregone wages from injuries and medical care are staggering. Research finds that, beyond direct costs, terrorist incidents can influence individuals’ patterns of spending and investment. getAbstract recommends this succinct but worthwhile article from the World Economic Forum to anyone interested in the sobering statistics on terrorism’s economic damage.

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Numerous terrorist attacks in Madrid, London, Paris, Brussels and Berlin have made the issue of terrorism an ongoing subject of citizens’ and governments’ attention in the European Union. Extensive media coverage reaches massive audiences that become eyewitnesses to the events, leading to widespread trauma. Terrorist incidents inflict far-reaching psychological damage on people’s quality of life through self-reported reduced levels of happiness and trust in other people and civic institutions.

This type of exposure can also affect consumer expenditures...

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The World Economic Forum is an independent global organization that engages leaders of business, politics, academia and society to improve the state of the world.

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The Financial Cost of Terrorism in Europe

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