War has never benefited countries in the long run but has turned the lives of people living in countries involved upside down. War of any sort, either it’s a civil war; within the nation or between the nations. Wars can bring disastrous changes of all sort including economic changes as well.

The economy is like the backbone of a country. If it collapses, consequences could be worse.  The major impacts of war on the economy are:

  • In various circumstances, war can raise the inflation rate and eventually it influences people’s savings and the confidence in the financial system gradually declines. This declining situation slowly fails the market.
  • Public sector hits arise during a war. The government borrows a lot than usual to raise the war effort without looking at how the national debt is touching heights.
  • War can provide a temporary boost to domestic demand but the cost of war is crucial. The cost of rebuilding after a war could be huge.
  • In a civil war, countries experience collapsing tourism and foreign investment especially.
  • During a war, thousands of soldiers lose their lives and billions of people lose their loved ones forever which is the greatest cost a country can bear.

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