Economic Costs of Hurricane Ian Include an Estimated $36.7 Billion Net Loss in US Output
Published on September 30, 2022
On September 28, Hurricane Ian made landfall along the southwest Florida coast causing severe wind damage and flooding. The loss of life and human suffering is of paramount importance and should be the primary concern, as well as enormous emotional losses. In addition, the storm will have a significant impact on the economy, which could rise if there is significant additional damage in South Carolina.
Based on the modeling system that we have developed over the past 40 years and used to assess numerous natural disasters and current property damage estimates, when multiplier effects and the various positive and negative aspects of the economics of the storm are considered, the net impact of Hurricane Ian could include economic losses for the United States (which would be observed over an extended period of time) of $84.5 billion in total expenditures and $36.7 billion in gross product, with about $62.0 billion in total expenditures and $27.0 billion in gross product in Florida.
In addition to the enormous human costs, Hurricane Ian will have a significant net negative impact on the economy. However, the area will recover over time and likely resume its prior pattern of expansion in the future.
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