Terrorism caused record levels of economic damage last year, according to a new report from the Institute for Economics & Peace (IEP), a global think-tank based in Sydney.

The Global Terrorism Index “conservatively estimates” last year’s bill at $US52.9 billion ($74.49 billion) – up 61% on 2013 and 10 times the 2000 total.

The number of terrorism deaths soared 80% last year to 32,658 – nine times greater than in 2000.

Five countries – Iraq, Nigeria, Afghanistan, Pakistan and Syria – accounted for 78% of lives lost, although the report warns the danger is rapidly spreading to other countries.

Private citizens are increasingly the target, with such deaths up 172% last year compared with 2013. Attacks on religious targets resulted in 11% fewer deaths.

More than half of all terrorism deaths were attributed to the groups Boko Haram (6644) and Islamic State (6073).

Australia was ranked 59th of 162 countries surveyed in terms of terrorism’s impact last year.

Western countries recorded 37 terrorism deaths last year – just 0.11% of the total – with four in Australia from seven attacks.

Islamic State has threatened cyber attacks on Western nations, and UK Chancellor George Osborne has committed an additional £1.9 billion ($4.07 billion) to cyber security to 2020.

“[Islamic State’s] murderous brutality has a strong digital element,” he said.

“Let’s be clear, [Islamic State] is already using the internet for hideous propaganda purposes: for radicalisation, for operational planning too.

“It has not been able to use it to kill people yet by attacking our infrastructure through cyber attack. They do not yet have that capability.

“But we know they want it, and are doing their best to build it.”