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Unformatted text preview: Estimated Economic Effects of the Mumbai Attacks Introduction This weeks terrorist attacks in Mumbai, while quite different, are reminiscent of the terrorist attacks in the United States (US) on September 11, 2001 (9/11). Consequently, it seems reasonable to consider the likely economic effects of the Mumbai attacks on Indias economy by referencing the economic effects of the 9/11 attacks. We estimate that Indias real gross domestic product (GDP) for the fourth quarter of 2008 will be reduced by 0.3%-to-1.1% as a result of the attacks. 9/11 The 9/11 attacks contributed to a 1.4% decline in US real GDP growth during the third quarter of 2001; real GDP increased 1.6% during the fourth quarter. 1 Direct impacts from the attacks were felt in Personal consumption expenditures for Transportation services, which fell 7.5% and 5.9% during the third and fourth quarters, respectively, from a second-quarter level of $296.1 billion....
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This note was uploaded on 04/26/2010 for the course FIN FIN4160 taught by Professor Prof.chow during the Spring '09 term at CUHK.
- Spring '09