What are the effects of a volcano in a country's economy?

Answer 1

Volcanoes can change the economy positively or negatively.

The positive way is that a cone volcano like Mt.Fuji in Japan can bring tourist. Then the country might have a tourist based economy Also after an eruption,the land will become fertile which farmers can use to grow crops,and then sell them.Theres also a slight chance that the volcano might have jewels,which will cause mining and and a boost to the ecomomy.

The negatives are volcanic eruptions.Sure,they can fertilize the land but the lava will destroy the land first.The eruption could destroy a forest by causing a wild fire,ending the chance of logging.If the lava goes into a town,then it will obviously damage it, costing millions of dollars on repairs,meaning the economy gets sucker-punched in the face.The eruption can also cause land slides, which might end up destroying part of a town,which will cost the government millions,once again,pushing the economy of a mountain.Then theres insurence.Everyone has insurence,so the insuring companies will have to pay up.Normally,only 2 of those thing happen.But if all 3 happen,the economy is as good as dead.