
CALIFORNIA CATASTROPHE
01/21/2025 |
While the LA fires are likely to go down as the costliest climate disaster in US history, and may top $300 billion, 1% of GDP, the national economic impact is likely to be small. Maybe a 0.2% drag in GDP in 25Q1, a loss of 30,000 jobs, and a rise of 0.1% in inflation. Locally, building products, residential construction labor, rents, and cars, are likely to see noticeable price increases.