MEASURING AND UNDERSTANDING THE IMPACT OF TERRORISM

ECONOMIC
COSTS OF
TERRORISM
The global economic costs of terrorism are at the highest level since at
least 2001. It is estimated that in 2014 the global economic costs of
terrorism reached US$52.9 billion, with a total economic impact of
US$105.8 billion. This was calculated using IEP’s economic cost of
violence methodology which measures the direct and indirect costs from
the loss of life, destruction of property and losses from ransom payments.
The economic impact refers to the direct and indirect costs in the current
year represented in constant 2014 US$.
Quantifying the total global economic costs of terrorism is complicated.
The direct costs of terrorism include the direct loss of life and damage to
property from a terrorist attack. Measuring the indirect costs is less
tangible and precise. For example, studies trying to assess the cost of the
September 11 attack have estimates ranging from US$35 billion to US$109
billion. 16 In addition, there are many different types and methods of
terrorist attacks. The difference in type, size and severity of attacks makes
a generalisation of the economic cost of an attack difficult to quantify.
GLOBAL TERRORISM INDEX 2015 | Economic Costs of Terrorism
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