Both storms were predicted to cause huge damage. RMS-a tragedy, the research firm estimated Harvey can cause losses of about 25-35 billion. However, this is only will get insurance. Total economic losses, including the account not be covered, this number can be up to 70-90 billion.
Do not just affect the House, Harvey and Irma also led many unemployed and can drag drop third quarter GDP growth.
Billionaire Richard Branson avoid Super typhoons in the cellar, the Americans left the supermarket because the Super Storm
In just 2 weeks, Americans faced with 2 super Typhoon-Harvey and Irma. Late last month, Harvey sweeps Texas and Southwest Louisiana, blown billions of USD. Also now, Irma are devastated Florida.
Then the forecasted Worldwid AIR Irma can cause losses of about 15-50 billion. This is will get insurance in the United States. Meanwhile, losses in the Caribbean can be up to 65 billion dollars.
Others argue that this number may be higher still. Chuck Watson-a disaster researcher at Enki Research said that the situation “looks pretty murky.” Watson estimates the total damage can cause the Irman 172 billion dollars for the US. In it, about 65 billion dollars will be paid insurance and 40 billion dollars will need to program the national flood insurance. It is in the case of the intensity of the storm does not change when moving up North.
Besides, this storm will not only impact on real estate. Harvey has affected the job market. And Irma are predicting will make this situation more severe. This may drag far behind the economic growth in the short term.
American officials said about 62,000 people were looking to the unemployment insurance last week in August, mainly from Texas. This raised the total number of claims for subsidy up to that week 298,000-high for more than two years.
However, following the natural disaster, the economy will soon rebound. So, economists predict this will not last long.
A large part of the reconstruction is supported by insurance payments and federal assistance. This will increase the number of jobs, Gus Faucher-Chief Economist at the PNC Financial Services Group said.
Jim Baird Director at Plante Moran Financial Advisors investment is that the majority of negative impact will only stop at the State level. “Short term economic impacts very negative, but mostly in the place where the storm goes through. The overall economy of the United States are still going in the right direction “, he commented.
“America’s growth may slow down in the second quarter, due to tropical storm Harvey and Irma. But it will turn back to the end of the year and extends to the year 2018, “he said.