Horrible Hurricanes

hurricaneThe destruction of private wealth and public infrastructure caused by hurricanes Harvey and Irma is roughly $200 billion. The impact on GDP growth will critically depend on how fast refineries in Houston and tourism in Florida recover, along with how much insurance money and government disaster assistance arrives. 17Q3 GDP will be three-quarters of one percent lower, with compensating boosts in later quarters. The long run effects will be zero.

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