During the disaster and in its immediate aftermath, economic activity will likely be depressed below what it otherwise would have been depressed spending during the crisis is merely postponed and made up later. Meanwhile, the repairing and rebuilding of housing, buildings, and infrastructure generates Jobs and greater demand for building materials and other goods and services. Those activities may well generate enough Jobs and economic activity to boost GAP above what it otherwise would have been for a while after the initial dip.
Repaired and rebuilt homes, stores, and infrastructure may well be better built and sounder than what they replace but, in the meantime, the economy will not be as reductive as it would have been without the damage. Http://www. Dalliance. Com/ 2012/10/30/economic-impact-from-hurricane-sandy-wont-derail-economy/ Airlines have canceled thousands of flights, stranding travelers around the globe.
Insurers are bracing for possible damages of $5 billion. Retailers face shrunken sales. Action's big stores are expected to lose billions, and the losses could extend into the crucial holiday shopping season. Sales at department stores, clothing chains, Jeweler's and other sellers of non-essential goods are expected to suffer the most. Http://www.
Huffiness's. Com/2012/10/30/hurricane-sandy-economic- impact_n_2042820. HTML hurricane also is unlikely to have much of an effect on the federal budget deficit. Government aid after Hurricane Irene totaled Just $1.
Billion, according to Moody's Analytics. The deficit, in contrast, is $1. 1 trillion. Hurricane will slightly hurt employment and will take a 0. 5 percent cut out of real gross domestic product (GAP) in the last three months of the year. But Paul Seaworthy, chief U.
S. Economist at Capital Economics, said that the hurricane's net impact could even boost GAP because of rebuilding efforts. Workers who are unable to work now will be able to make up for it with overtime work later.He noted that most infrastructure that keeps the economy going, including cell towers, refineries and airports, is still intact, and that power outages are likely to be remedied soon Most of Hurricane Sandy's economic impact will come from property damage, not lost work, Azans said.
Insurance companies can handle the losses, he added, since they are "well reserved and well prepared," and their payouts still are likely to be below expectations for the year. Seaworthy noted that property repairs and infrastructure clean-up will help make up for any economic losses, since people will be getting paid to do the repairs.
