The Ripple Effect: Economic Impacts of Internal Displacement. Unveiling the Cost of Internal Displacement

Internal displacement can have a destabilising effect on the lives of those forced to flee their homes, often with significant financial repercussions. It can limit the ability of internally displaced people (IDPs) to contribute to the economy and generate specific needs that must be paid for by the IDPs themselves, host communities, government agencies and the humanitarian sector. Based on an original methodology, IDMC in February 2019 first estimated the direct cost of providing every IDP with support for housing, education, health and security, and their estimated loss of income in eight countries.

The economic impact of internal displacement globally in 2017 was estimated at $13 billion, with an average cost and loss of $310 per IDP.2 In a subsequent study, the cost of internal displacement in sub-Saharan Africa for 2018 was estimated at $4 billion.