Following the terrorist attacks in the US, economists and markets in the EU began to weigh the potential impact of these attacks on the European and wider global economy. Some state the downside risks for economic downturn have risen (many European markets plummeted after the attacks), or even call for a postponement of the euro, others continue to see a world recession as unlikely.

Several questions arise while considering what the economic impact might be on the European, US and world economy:

  • What are this event's immediate economic consequences?
  • Could the event lead to a self-reinforcing spiral of falling consumer confidence, falling demand and falling output?
  • Will the Organisation of Oil Exporting Countries (OPEC) stick to its plans to keep oil prices stable?
  • Will these attacks have significant long-term effects on the world economy?