Deadly attacks like the weekend's bomb blasts in Bali are akin to a "terror tax" on a global economy that is already facing risks, the International Monetary Fund (IMF) said today.
Mr Kenneth Rogoff, chief economist at the IMF, said the bombings on the Indonesian island clearly dealt a blow to Asia's economy but that it was unclear as to how serious it would be.
"It's plausible that the economic effects on growth next year in the region will be limited, but that outcome is of course sensitive to how the security situation evolves, how policy responds and above all what the effects are on business and consumer confidence, domestically and in the rest of the world," Mr Rogoff said.
By raising costs for insurance, security and protection, Rogoff said attacks like those in Bali and those on the United States on September 11th, 2001, at the very least blunted the benefits of positive trends in productivity and technology.
"One can think of there being a terror tax on the global economy," Mr Rogoff said.