By Amjad Baker
Albawaba.com – Amman
A Jordanian economic expert and former deputy prime minister has said that the suicide attacks on US vital sites and landmarks Tuesday would initially cost the country up to $50 billion.
“It is difficult at this stage to determine what losses have been inflicted [on the US] as a result of the terrorist attacks, either at the human or economic level,” said Jawad Al Anani.
At the economic level there are direct and indirect losses, he said.
According to the expert, direct losses include those suffered due to the closure of the bourses, the freeze on transport,” among other direct losses, estimated in all at $30-50b.
The resulting hike in oil and gold prices and the deterioration in the value of the dollar are among direct losses, he added.
Also, the world stock markets have recorded a 7-8 point fall and will need some time to recover.
Anani said the six-trillion US GDP would be able to absorb this loss. However, a tremendous loss will also result from the halt in the international air traffic, the closure of borders with Mexico and the intensifications of security measures. Based on that, the tourism sector would be negatively affected, he said.
Asked if a military operation against what the US sees as the people behind the attacks and the states harboring them would do good as far as economy is concerned, Anani said that such plans would not help regain confidence in the US economy.
“The US has to restore the confidence of its citizens who pay billions for satellites and sophisticated security apparatus…Now they will begin to ask ‘where has all that money gone?’”
“I do not expect there will be a military operation, for the time being at least, because the party or parties behind the attacks are not known yet. Besides, such reaction would complicate things and lead to higher oil prices and other harmful results,” he stressed.
The former foreign minister urged the US “to reevaluate its stands regarding the [Middle East] region and restructure its foreign policy especially towards the Arab countries.” – Albawaba.com
