Terrorism impacts the world economy

Terrorism impacts the world economy

ACCORDING TO THE Organization for Economic Cooperation and Development (OEDC), while the world economy was not destroyed by terrorism, attacks on the United States significantly slowed growth. In its publication, Economic Consequences of Terrorism, the OECD examined the effects of September 11 and the destruction of the World Trade Center on global business activity.

CNN/Money reported that forecasters slashed projections for U.S. growth in the weeks following September 11, and while the situation was not the nightmare they expected, the after-effects of wiping out multimillion dollar companies have taken a toll.

In its report, the OECD focused on insurance, international trade, and spending on security and the military, and the likelihood that more of the GDP will be allocated for military and police spending. However, the study concluded that long-term harm is avoidable, as long as the authorities make the right choices.

Copyright S/H Publications Incorporated Jul 2002

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