(Indirect economic) loss

Definition

A decline in economic value added as a consequence of direct economic loss and/or human and environmental impacts.

Indirect economic loss includes microeconomic impacts (e.g., revenue declines owing to business interruption), mesoeconomic impacts (e.g., revenue declines owing to impacts on natural assets, interruptions to supply chains or temporary unemployment) and macroeconomic impacts (e.g., price increases, increases in government debt, negative impact on stock market prices and decline in GDP). Indirect losses can occur inside or outside of the hazard area and often have a time lag. As a result, they may be intangible or difficult to measure.

Source

UNDRR (2016). Report of the open-ended intergovernmental expert working group on indicators and terminology relating to disaster risk reduction

Available at: https://www.undrr.org/terminology/economic-loss

See also: (Economic) loss, (Direct economic) loss

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