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Cyprus among top 10 countries whose economies most affected by violence

November 6, 2018 at 4:23pm

The Cypriot economy is the seventh most affected by violence-economy in the world, the latest edition of the Global Peace Index (GPI) found.

According to the GPI, 37% of Cyprus’ GDP in 2017 was spent on military and for covering the costs of displacement caused by 1974.

“Wartorn Syria is the economy worst affected by violence, costing the country 68% of its GDP. Violence still costs Afghanistan nearly two-thirds of its GDP, and just over half of the value of Iraq’s economy. Cyprus, though, is something of an anomaly, in that most of its economic cost is associated with the displacement of its population,” the World Economic Forum (WEF) website said.

The global economic impact of violence in 2017 was $14.8 trillion, the report said.

This is equivalent to 12.4% of the world’s economic activity, or $1,988 for every person on the planet.

The economic impact of violence rose by 2% during 2017 due to increases in the cost of conflict and internal security expenditures, with the largest increases associated with security spending in China, Russia and South Africa, the WEF said.

For the first time ever, refugees accounted for 1% of the global population – roughly the same number of people as the population of the UK, the report found.

“However, one bright spot is that overall military spending is falling as a portion of GDP. According to the 2018 Index, 88 countries are spending less and 44 spending more. Average country military expenditure as a percentage of GDP has continued its decade-long decline, with 102 countries spending less,” the WEF concluded.