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Home » Terrorist Attacks, Like Those in Paris, Said Not to Have Lasting Negative Impact on Economy

Terrorist Attacks, Like Those in Paris, Said Not to Have Lasting Negative Impact on Economy

November 18, 2015
The Economist

Despite some dire predictions at the weekend, financial markets have been remarkably sanguine in the face of this latest tragedy; at the time of writing, both the London and Frankfurt markets are up on the day. In this, investors may be learning from past experience. The events of 9/11 - an atrocity on a vastly greater scale than anything that preceded it - may have reduced GDP growth in the US that year by half a percentage point; the stock market (which was closed for a few days) recovered all its losses within a month. In July 2005, when suicide bombers attacked the London transport network, the UK market recovered within days; British GDP rose 0.8 percent that quarter.

The attacks may cause a short-term disruption to economic life; people may decide not to visit town centres for a few days. But this generally means they postpone their consumption rather than abandon it; economic activity is simply shifted from one period to the next.

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KEYWORDS business continuity plan Business Disruption Business Strategy Alignment consumer packaged goods Global Supply Chain Management SC Security & Risk Mgmt Supply Chain Analysis & Consulting Supply Chain Management Supply Chain Management: Supply Chain security and Risk Management supply chain resiliency Supply Chain Risk Management The Economist
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