An evacuee holding two dogs reacts after his rescue by Texas National Guardsmen from severe flooding due to Hurricane Harvey in Cypress Creek, Houston, U.S. August 28, 2017. U.S. Army National Guard/Capt. Martha Nigrelle/Handout via REUTERS.
BENGALURU (Reuters) – U.S. economic growth will take a mild hit in the current quarter from Hurricane Harvey that slammed into Texas, but the outlook for the coming year remained steady in the latest Reuters poll, suggesting lost output will likely be recouped.
Harvey - Storm - Texas - Years - People
Harvey was the most powerful storm to hit Texas in more than 50 years, killing over 60 people and displacing more than 1 million citizens. It also forced a temporary closure of refineries and the governor of Texas said the damage was around $180 billion.
Asked about the impact of Hurricane Harvey on economic growth in the current quarter, the median forecast from 48 economists who answered an extra question was for a 0.3 percentage point hit to seasonally adjusted annualized growth.
Impact - Economists - Survey - Sept - 7-12
But the impact was expected to be short-lived according to economists, who responded to the survey Sept 7-12 before and as another powerful storm, Hurricane Irma, ripped through the Caribbean and then Florida, killing more than 60, displacing and leaving millions of households without power.
Previously, major hurricanes like Katrina in 2005 and Sandy in 2012 had cost more than half of the GDP growth rate for the respective quarters the storms hit.
Data - Storms - US - Economy - Job
But data following those storms also suggest that the U.S. economy was able to add solid job numbers and bounce back from government reconstruction efforts.
“A storm of this magnitude is likely to have negative near-term effects on nationwide economic data. If flooding remains disruptive for several weeks, we would expect a drag on non-farm payrolls, but the historical experience here is mixed,” said James Sweeney, chief economist at Credit Suisse.
“The effect on...
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