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It’s well known that strong earthquake negatively affects the gross domestic product and thus the welfare of the population. The initial decrease in revenues and expenditures causes the multiple reductions of revenues and expenses in the economic system. This effect is called the multiplier effect. For Russia this effect is approximately equal to two. Thus, if the earthquake causes revenues decrease by $ 100, then the GDP will decrease by $ 200.

Benefits of the contribution of small additional investments to increase the earthquake resistance of buildings than subsequent expenditures of hundreds of millions for recovery from catastrophic earthquakes caused by the mismatch of the calculated and actual occurrence of earthquakes is shown.

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