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Hurricane Florence’s Economic Price Tag

Hurricane Florence, the latest hurricane to pound the east coast, made landfall in the Carolinas’ nearly 2 weeks ago. On September 17th CNBC’s Senior Economics Reporter Steve Liesman reported that flood waters had not receded; which indicates that there was more damage to come as the flooding goes down. JP Morgan believes the national GDP will not affected, but expected there to be sone regional impact in the Carolinas’. Businesses and homes are expected to need funding for rebuilding efforts; which will require federal funding as well as insurance money. The hope is that rebuilding efforts will stimulate the regional economy and make new jobs available overtime. The rebuilding efforts will help stimulate the local economy because of an influx of liquidity and capital needed to rebuild businesses and homes.

The Nation Hurricane Center’s initial estimate of the damages are expected to exceed $30 billion. They claim that this is the sixth costliest Atlantic hurricane to hit the US in reference to property damage. Conversely, AccuWeather estimates that the damage will cost between $50-$60 billion. AccuWeather claims flood waters will take a couple of weeks to recede. They are worried of mold forming in homes and businesses stalling economic activity and costing the National GDP $20 billion. We will see how accurate these two estimates are in the coming weeks and months as the Carolina’s begin their rebuild.

 

 

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