Question

how does earthquake effect on Economy of the country with full explanation ​

Answer 1

EXPERIENCES of past and recent earthquake-damages

have well established the severity of economic losses and consequences of this event.

Earthquakes generate a variety of

economic impacts and these impacts adversely affect the economy of the country or state. The economic impact of an earthquake or any natural disaster can be classified as: (i) losses to immovable assets,

(ii) losses to movable assets

(iii) economic losses due to business interruption,

(iv) public sector economic costs, and (v) household income losses due to death, injury, and job disruption[4].

The first impact consists of the

direct economic losses due to destroyed or severely damaged

buildings and other structures (such as power substations).

Losses to movable assets consist of economic losses due to

damaged or destroyed contents of buildings and other private

property. Public sector economic costs accrue because of loss

of revenues and increases in expenses for the public sector.

Further, economical losses broadly categorized into direct economical-loss and indirect economical loss.

The first two impacts, i.e., losses to immovable assets and losses to movable assets are considered as direct loss and the rest three impacts,

i.e., economic losses due to business interruption, public sector economic cost and household income losses are considered as indirect economic loss [9]