How Will Hurricane Ian Affect the Economy?




  • In Business
  • 2022-10-03 17:20:26Z
  • By GOBankingRates
Gerald Herbert / AP
Gerald Herbert / AP  

Hurricane Ian has devastated parts of Florida and the human toll is still rising. The hurricane is also set to be one of the costliest in the country.

See: Will Gas Prices Go Up As A Result of Hurricane Ian?
Find: Does Renters Insurance Cover Hurricane Damage in Florida?

Ian is expected to be one of the top 10 costliest storms in the country's history, with costs estimated between $70 billion to $120 billion in economic damage, Bloomberg reported.

While these estimates are still preliminary, Greg Daco, chief economist at EY-Parthenon, said Ian could lower Florida's economic output by "about 6 percentage points in the third quarter and shave three-tenths off U.S. GDP," according to Barron's.

"The hurricane is expected to severely disrupt economic activity over 10 days, with power cuts, flight cancellations, suspension of energy production, impact on farms agricultural crops, in particular oranges," Daco said.

Daco added, however, that "generally, natural disasters don't have structural effects on economic activity. What's been destroyed eventually gets rebuilt or gets transformed," according to The Wall Street Journal.

While natural disasters tend to have temporary economic consequences, "activity  is slowly made up in subsequent years when federal disaster assistance and insurance payouts allow for rebuilding," The Wall Street Journal noted.

Meanwhile, CoreLogic assessed that wind losses for residential and commercial properties in Florida are expected to be between $22 billion and $32 billion, while insured storm surge losses in Florida are expected to be an additional $6 billion to $15 billion, according to a Sept. 30 analysis.

Take Our Poll: Have You Ever Lost Wealth Due to a Natural Disaster?
Food Stamps Schedule: Florida SNAP EBT Benefits for October 2022

"This is the costliest Florida storm since Hurricane Andrew made landfall in 1992 and a record number of homes and properties were lost due to Hurricane Ian's intense and destructive characteristics," Tom Larsen, Associate Vice President, Hazard & Risk Management, CoreLogic, said in a press release. "Hurricane Ian will forever change the real estate industry and city infrastructure. Insurers will go into bankruptcy, homeowners will be forced into delinquency and insurance will become less accessible in regions like Florida."

  • Student Loan Forgiveness: Mark These 4 Dates On Your Calendar Now

  • SNAP Benefits 2022: Beware of These Scams

  • 7 Surprisingly Easy Ways To Reach Your Retirement Goals

  • 6 Best Ways to Help You Keep Your Identity and Credit Safe

This article originally appeared on GOBankingRates.com: How Will Hurricane Ian Affect the Economy?

COMMENTS

More Related News

DeSantis-backed school boards begin ousting Florida educators
DeSantis-backed school boards begin ousting Florida educators

New board members in two GOP-leaning counties essentially sacked their school superintendents over the span of one week.

China Economic Activity Falls as Covid Cases Surge to Record
China Economic Activity Falls as Covid Cases Surge to Record

(Bloomberg) -- China's economic activity contracted further in November amid a record Covid outbreak, with growth likely to remain weak and the central bank ...

Sanford Insurance Center Inc, a Sanford Insurance Agency, Offers Diverse Insurance Policies to Renters and Owners of Condos, Mobile Homes, Vehicles, Motorcycles, and RVs
Sanford Insurance Center Inc, a Sanford Insurance Agency, Offers Diverse Insurance Policies to Renters and Owners of Condos, Mobile Homes, Vehicles, Motorcycles, and RVs

Sanford Insurance Center Inc works with tens of insurance companies to provide diverse homes, mobile homes, vehicles, motorcycles, and RV in

Giving Tuesday: Dunkin
Giving Tuesday: Dunkin' Offers Free Coffee to Florida Residents As Thanks For Hurricane Recovery Efforts

Dunkin' wants to spread a little sunshine to the storm-battered Sunshine State this Giving Tuesday, as the doughnut chain announced it will offer a "cup of...

Judge accepts insanity plea deal for Florida man in 2016 face-biting case
Judge accepts insanity plea deal for Florida man in 2016 face-biting case
  • US
  • 2022-11-28 17:17:00Z

A judge accepted a plea deal Monday for a man who randomly killed a Florida couple in their garage six years ago and then chewed on one victim's face that...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • Hire wikipedia Editors
    (2022-10-03 18:29:44Z)

    It's no doubt hurricane Ian will have dire effects on the economy but also on the lives of many Americans. My heart stands with all

    REPLY

Top News: Business