Already, economic indicators in these countries have been revised downward after terrorist incidents. Following the attacks by the Islamic State, for example, Tunisia’s projected annual GDP growth for 2015 was cut from 3% to 1%. The tourism sector is expected to experience a 45% decline – implying a drop in revenue of some $1.1 billion. The damage to the sector – and, more broadly, to investor confidence – will trickle across Tunisia’s economy, pushing down output, fiscal revenue, and foreign reserves.
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