Sawab Center Latest Study examines economic impact of terrorism in post-2011 Egypt, Libya, Tunisia
(MENAFN- Edelman) Abu Dhabi, UAE, 7th August 2024: As a result of the uprisings that began in 2011, the MENA region faced economic losses estimated at $62 billion between 2014 and 2016. Sawab Center’s latest research paper, titled “Terrorism’s Economic Toll: Impact on Egypt, Libya, and Tunisia,” reveals that Egypt’s economy would have been $57 billion larger if it had maintained its growth rate from the previous decade. Similarly, Libya and Tunisia would have seen increases of $95 billion and $17 billion, respectively. The rise in terrorist attacks following the uprisings led to a sharp decline in tourism and oil revenues in these countries, significantly impacting national incomes.
Before 2011, Egypt, Libya, and Tunisia experienced steady economic growth, with Egypt and Libya seeing their GDPs increase by 5% from 2006 to 2010. However, following the uprisings, their growth rates plummeted, with Egypt’s GDP declining by 2.7% and Libya’s by 0.6%. Tunisia’s GDP growth also fell significantly, reaching just 1.94%.
Each country faced unique challenges: Libya, heavily reliant on oil, saw its production drop from 1.3 million barrels per day in 2010 to 0.3 million in 2011 due to the civil war, severely affecting the government’s revenue. Egypt and Tunisia, both major tourist destinations, experienced sharp declines in visitor numbers and revenue. For instance, Egypt’s tourism earnings plummeted from $13.6 billion in 2010 to $3.3 billion in 2016.
Speaking about the paper, Sara Almarzooqi, Director of Sawab Center, noted: “In the past decade, the MENA region has experienced extreme levels of terrorism. Countries experiencing high rates of terrorist attacks show markedly weaker economic growth. Extremism disrupts crucial economic sectors like tourism and energy. There is an urgent need to enhance security and foster sustainable economic growth. These steps are essential for mitigating the impact of terrorism in the future.”
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