hurricane ian cause economic hit

HURRICANE IAN IS LIKELY TO WEIGH ON U.S. ECONOMIC GROWTH THROUGH THE END OF 2022, ECONOMISTS SAY.

IN ADDITION, REBUILDING AND RECOVERY ARE PUSHING ECONOMIC OUTPUT IN THE COMING YEARS.

THE HURRICANE HIT FAST-GROWING COMMUNITIES ALONG FLORIDA'S SOUTHWEST COAST,

ACCORDING TO A PRELIMINARY ESTIMATE BY FITCH RATINGS, IT WILL CAUSE INSURED LOSSES BETWEEN 25 AND 40 BILLION DOLLARS.

WIDESPREAD POWER OUTAGES, CLOSED AIRPORTS AND IMPASSABLE ROADS WILL SLOW THE REOPENING OF THE ECONOMY.

MORE DAMAGE IS LIKELY AS THE STORM HEADS TOWARD GEORGIA AND SOUTH CAROLINA ON FRIDAY.

GREG DACO, CHIEF ECONOMIST AT EY PARTHENON, ESTIMATED THAT THE STORM COULD REDUCE FLORIDA'S ECONOMIC PERFORMANCE BY ABOUT 6 PERCENTAGE POINTS IN THE THIRD QUARTER.

THAT WILL REDUCE NATIONAL ECONOMIC GROWTH FROM JUNE TO SEPTEMBER BY ABOUT 0.3 PERCENTAGE POINTS

AND ROUGHLY 0.1 PERCENTAGE POINT IN THE FOURTH QUARTER OF THE YEAR, HE SAID.

NATURAL DISASTERS OFTEN CAUSE A SHORT AND SHARP ECONOMIC CONTRACTION IN AFFECTED AREAS.

BUSINESSES CLOSE TEMPORARILY AND RESIDENTS EITHER FLEE OR HIDE IN THEIR HOMES.

HOWEVER, SOME OF THIS LOST ECONOMIC ACTIVITY IS SLOWLY RECOVERED IN THE FOLLOWING YEARS AS FEDERAL DISASTER RELIEF AND INSURANCE PAYOUTS ALLOW FOR RECOVERY.

"I EXPECT THAT PEOPLE WILL STOP GOING TO RESTAURANTS FOR A WHILE,

THE NIGHTLIFE IN TAMPA WILL PROBABLY NOT BE THE SAME, MAYBE SOME BUSINESSES WILL BE FORCED TO CLOSE," SAID TATYANA DERYUGINA.

ECONOMIST AT THE UNIVERSITY OF ILLINOIS URBANA-CHAMPAIGN.

"ON THE OTHER HAND, THERE WILL BE DESTROYED CARS, DESTROYED HOMES THAT NEED TO BE REBUILT,

AND PEOPLE WILL BE GOING OUT AND SPENDING MONEY, WHICH WILL DRIVE GDP UP."

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