Beyond the losses caused by a disaster’s destructive force, less direct consequences can also impact the economy. One is the inability of people displaced by the disaster to continue their habitual work. By disconnecting people from their productive activity for days, weeks, months or even years, internal displacement reduces economic production. In the case of the earthquake that hit Nepal in 2015, this reduction amounted to nearly two per cent of the country’s GDP, or $406 million.
This paper is part of IDMC's thematic series "The ripple effect: economic impacts of internal displacement". The series aims to measure the effects of internal displacement on the economic potential of internally displaced people, host communities and societies as a whole, bridging the knowledge gap through innovative research, partnerships with experts and practitioners from a wide range of disciplines and consultations with policy stakeholders concerned with economic development.
Lost production due to internal displacement - The 2015 earthquake in Nepal
June 2018
