Sara Gonzalez
Economics
Mr. Reuter
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.
Works Cited
"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.
People definitely have a right to feel unsafe when travelling to France. Terrorist attacks are no joke, and although our military is doing everything possible to prevent them on home turf, the brutal reality is that they cannot protect us from everything. France's economy takes a huge hot when something like this happens because they are forced to shut venues down temporarily for safety precautions and reparations for the damage done. However with all the other countries supporting France, I think France will be able to bounce back stronger than ever given some time.
ReplyDeleteI thought this was a very interesting piece, also I'm curious to see how these attacks will effect their tourism. As you mentioned France gets about 83 million tourists a year, but after an attack like this how will that effect the amount of people, and revenue the France economy loses from tourism. However, I do believe that the France economy will bounce back rather quickly, because of all the supporting countries they have, like the United States. Also Boys Basketball game against Whitnall tonight. @ 7:30 home, be there.
ReplyDeleteThis isn't surprising at all, that is defiantly something that ISIS and other terrorist organizations look to do is hurt a countries economy. Just imagine if they coordinated an attack in the U.S on like 5 different malls. The economic affect would be huge. People would be afraid to go out and shop and a collapse of the economy is a collapse in a part of what makes this country great and that is really the goal of terrorists. They want to see the country destroyed and destroying the economy would be a big win for them so I wouldn't be surprised to see more attacks on public events to make sure people are so afraid to walk out of their doors the country falls apart.
ReplyDeleteThe attacks in Paris have such a huge effect on many things, but I didn't even think about the economic issues it has caused. It makes sense that people aren't going to hotels, restaurants or cafes anymore due to the fear of another attack. I also didn't think about how many people travel to pairs that now will postpone their trips or not go at all. According to this post, the economy seemed to be in a great place and now after the attacks it is scary that they also have to deal with all the economic repercussions.
ReplyDeleteIt totally makes sense, the terrorist attack not only affected people that exact moment, it also caused a long term negative effect, do to the fear that people feel it is going to be hard for people to act as if nothing happened and keep going with their daily life. For a while people will try to avoid going to public places and tourist will give their Paris vacation a double though.
ReplyDeleteThis doesn't surprise me at all that the economy is taking such a huge hit due to the recent terrorist attacks. Im sure ISIS is behind this behind this because they aim to destroy other countries that are better than theirs or don't agree with the way things are ran. tourism in France is one of the major incomes for the country along with the landmarks that attract people from around the globe. Now with no body coming to their country to spend money and locals don't want to go out and spend money either their GDP is going to take a real beating this year and probably will take some time to get back on their feet.
ReplyDeleteSad, especially because these kind of attacks will not disappear anytime soon. In fact, I feel that these kind of attacks will only become more often and violent. In a video published by IS the Islamic State, Abu Bakr al-Baghdadi states that Isis will continue its terror and will soon strike like fire ants in the states. Very nerve racking.
ReplyDeleteHearing that the economy has been affected doesn't surprise me at all because people are afraid. They won't visit France because they're afraid for their safety. The demand for hotels as well as other attractions will decrease which means there's going to be a smaller revenue. Those people who worked at these places that are being closed down will be unemployed and their whole family will be affected. Overall, the attack in Paris has really affected the economy in a negative way.
ReplyDeleteIt is so sad to think that a few people could ruin a countries economy. Such unexpected events causing the country to fear walking out of their front door. These attacks also must have caused there military spending to drastically increase in order to keep their people save. I think that in our case it is helpful that we have foreign aid in order to make sure that France does not crash and burn, and that we can support them through this hardship like they were once here for us. I think the best thing we can do worldwide is stick together in order to prevent other economic down falls. Great topic and explanations of the attacks effects on the French economy and also economies worldwide.
ReplyDeleteIt makes sense that the French economy is taking a hit after the terrorist attacks, it is the same thing that happened to the US after 9/11. The demand to go to France has definitely decreased due to outside risks. People simply don't feel safe traveling there, or going out in general. With people not going out, the spending has definitely had to decrease. I think people view it as the trade off between a bad economy or their lives, they much rather value their lives. In addition, the closing of large profit businesses will not only affect spending, but the unemployment rate will most likely go up as well. Until people start feeling safe in France, the economy will most likely continue to suffer.
ReplyDeleteAlthough of course the terrorist attack caused inflation to increase and also spending to decrease this has a lot to do with just people not wanting to go out and about after an attack. After 9-11 there was a huge decrease in spending because of the attack and people will not want to leave their homes to buy goods. Inflation will more than likely go back to normal in time as well spending in Paris.
ReplyDeleteThis is what I like about America so much, we care about other countries and not just ourselves. We may know people in France or know somebody knows some where there. We all suffer from it. The demand decrease people are scared to go out and they should. Where is the holy ground? No one knows because these tragic events have are occurring everywhere. Our school was suppose or maybe still is going to Paris for a band trip and now the school probably won't let them come. That's a lot of money that people are going to safe instead of spending because of those attacks. The places that were hit financially got attacked because you have to pay for a new building and new equipment or machinery and that can get expensive. Some of the places are starting from scratch, so there economic is going to slow down then until those places can start up again, no matter how long it takes.
ReplyDeleteThis is what I like about America so much, we care about other countries and not just ourselves. We may know people in France or know somebody knows some where there. We all suffer from it. The demand decrease people are scared to go out and they should. Where is the holy ground? No one knows because these tragic events have are occurring everywhere. Our school was suppose or maybe still is going to Paris for a band trip and now the school probably won't let them come. That's a lot of money that people are going to safe instead of spending because of those attacks. The places that were hit financially got attacked because you have to pay for a new building and new equipment or machinery and that can get expensive. Some of the places are starting from scratch, so there economic is going to slow down then until those places can start up again, no matter how long it takes.
ReplyDelete