US economy in wartime

March 30, 1999

Waging war in Yugoslavia is not expected to have much effect on the American economy - at least not yet. Gordon Adams of the International Institute for Strategic Studies, London, assesses the costs this way.

*The buildup to hostilities cost some $200 million.

*The daily cost of the war for the US is between $30 million and $40 million.

*If a peace deal is signed, the cost of keeping US troops in Kosovo could reach $1.5 billion a year.

*The downed F-117 Nighthawk stealth fighter cost $42 million.

*Each Tomahawk missile costs $1 million.

*The Pentagon does not budget for unplanned military actions. It will have to take the money from elsewhere in its $200 billion annual budget.