Terrorism is a constant companion of history and today has become an inevitable part of every country's economy, both in theory and in practice. This paper will analyze and examine the economic implications of terrorism, links between the incidence of terrorism and the state of a country's economy, as well as to present the basis for the analysis of terrorism within the economic framework. Terrorism has multiple roots and produces multiple effects, which can contribute to the significant decline in the economy of a state, and in some cases may be affected even in countries that are not included in the act. Although attention to the threat of terrorism is often focused on the death and injury caused by the terrorist attacks, acts of violence can also cause significant economic damage. Economic considerations come on the agenda in any discussion on this subject, but it certainly was difficult for scientists and policymakers to achieve a consensus on what is the role of the economy in fostering terrorism and how economic analysis can be useful for understanding terrorism and in creating strategies and specific policies to fight it.