The Financial Impact Of Hurricane Sandy


Hurricane Sandy, will have a very large negative short-term financial impact on the US, exacerbated by the already fragile economy.  It could bring the fourth quarter GDP down to flat, from an anticipated 2%-3% increase.  The cost of this storm will trickle down to most industries and when all is said and done, will cost the US Economy tens of billions of dollars.  Estimates put the actual cost between 30 and 50 billion dollars.  The New York Stock Exchange closing for two days, retailers losing precious sales as the holiday season approaches, restaurants that have not been able to open, online purchases drastically reduced because millions had no power and no internet service.  In short, there has been a fairly complete shutdown of the economy in the most densely populated section of the country.  Short term, this is a perfect financial storm, no pun intended.  However, there is light at the end of the tunnel.  All of the damage from Hurricane Sandy will need to be repaired.  The construction industry, companies that manufacture building materials, the car industry, boat industry and all of the feeder companies will experience a boom. That, plus the fact Insurance companies and the government will provide most of the financial resources, will help keep the economy from falling in to a recession following one of the costliest storms in US History.

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