Economic Damage of Hurricane Katrina
In total, we're assuming it will subtract 0.7 percentage points from growth in gross domestic product in the third quarter, lowering the expected U.S. growth rate to 3.7%. While most hurricanes have economic effects, Katrina has at least three unique factors: its impact on U.S. energy production , New Orleans and the disruption of a vital transportation artery,. In conclusion absent those factors, it is expected that there would be a GDP subtraction of 0.3 percentage points from the third quarter.
In total, we're assuming it will subtract 0.7 percentage points from growth in gross domestic product in the third quarter, lowering the expected U.S. growth rate to 3.7%. While most hurricanes have economic effects, Katrina has at least three unique factors: its impact on U.S. energy production , New Orleans and the disruption of a vital transportation artery,. In conclusion absent those factors, it is expected that there would be a GDP subtraction of 0.3 percentage points from the third quarter.