How did 9 11 affect the economy?

The 9/11 attacks had both immediate and long-term economic impacts, some of which continue to this day. The attacks caused the Dow to drop more than 600 points and the 2001 recession to deepen. It also led to one of the biggest government spending programs in U.S. history, the War on Terror. read more

The 9/11 attacks worsened the 2001 recession, which had begun in March 2001. The economy had contracted 1.1 percent in the first quarter but had bounced up 2.1 percent in the second quarter. The attacks made the economy contract 1.3 percent in the third quarter, extending the recession. The Y2K scare caused the 2001 recession. read more

The Federal government provided $11.2 billion in immediate assistance to the Government of New York City in September 2001, and $10.5 billion in early 2002 for economic development and infrastructure needs. The 9/11 attacks also had great impact on small businesses in Lower Manhattan, located near the World Trade Center. read more

Although we can quantify the economic impact of an event like 9/11, it's hard to settle on one particular number. For one thing, different studies produce conflicting results. For another, there's little consensus on what "counts" as a direct cost of the attack. read more