Economists predict a weaker economy in France, but no major effect in the medium or long term.
Tourism may fall. France is the biggest tourist destination in the world, so it may have an effect on France. People will go to restaurants less and may be less likely to spend lavishly for Christmas.
The effect on the stock market will likely be minor, if any, as the attacks happened on Friday after markets close in Europe, providing traders sufficient time to figure out what to do. Perhaps there will be some panic selling by retail investors, but large investors will use the opportunity to buy.
There were two major attacks in Europe before: in Spain in 2004 and in London in 2005.In neither case were there significant effects on the respective economies; both Spain and London are major tourist destinations.
On the other hand, the 9-11 attack had a significant effect on the US economy.
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