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.