November 17, 2015
Economy Attack on France
Paris France. November 13, 2015. Over 120 people have died. A total of 6 locations were attacked in and just outside of the capital. The attacks seem timed perfectly to sabotage the French economy, especially just in time for the holidays. Earlier that day, government officials announced that the fifth world's largest economy has grown since the past summer (Simons). So, in what ways could these attacks affect the economy?
When the United States was attacked on 9/11, France was by our side and conclude that strategic economic damage policy, at a minimum of $75 billion or three quarters of a percent of GDP. Before the attack, France was rising wage prices, low inflation which was a 0.1% rate, and decreasing energy costs, as well as a a GDP growth of 0.18%. Also the stock market has been taking a fall of 1 percent. The currency has also fell 0.7%(Jones).
France welcomes about 83 million tourists each year and the amount of people are still growing, it is one of the most visited countries. Travel and tourism has made up about 7% of France’s GDP, but with the attacks, the demand of people traveling are only going to decrease because they may not feel as safe. Because of the attacks, some huge profitable retail business have closed down, such as Disneyland Paris, the Louvre, and the Eiffel Tower. Not only have those places have to close down, but concerts as well have closed. With just these attractions closed, the amount of consumer spending will be at a low which will make a living for some people difficult. Along with the closing of these attractions people will be out of their job which will have an increase in the unemployment rate to about 10%(Giles). For those attractions not canceled theaters will have a financial loss from the costs of increased security (Jolly).
Not only will the attractions take a loss on the attack but so will cafes, restaurants, hotels, and other shops. There have already been reports of less people in the cafes and restaurants simply because people are afraid to go out and take any risk. As for hotels, there have been huge waves of cancellations within the first 24 hours. Airlines even went down 7.2% (Economic Impact).
Coming to a conclusion, France will have enormous impacts from the recent attacks, a huge impact that will be hard for France to recover from is the decrease in tourist. However, France is not alone and has support of other cities and countries around the world.
"France Fears Economic Impact of Paris Terror Attacks." RSS. Web. 16 Nov. 2015.
Jolly, David, Jack Ewing, and Doreen Carvajal. "After Paris Attacks, Waiting for Shopping and Culture to Come Back to Life." The New York Times. The New York Times, 16 Nov. 2015. Web. 16 Nov. 2015.
Simons, John. "To Dull Economic Pain Of Paris Terror Attacks, France May Find Lessons In US Fed's 9/11 Response." International Business Times. 15 Nov. 2015. Web. 16 Nov. 2015.
"5 Ways The Paris Attacks Could Hit Europe's Economy." Fortune 5 Ways The Paris Attacks Could Hit Europe's Economy Comments. 14 Nov. 2015. Web. 16 Nov. 2015.
"Paris Terror Attacks: What We Know so Far - CNN.com." CNN. Cable News Network. Web. 16 Nov. 2015.