Economic Costs of Hurricane Idalia Include an Estimated $18.4 Billion Net Loss in US Output
Published on September 15, 2023
On August 30, Hurricane Idalia made landfall as a Category 3 hurricane along Florida's Gulf Coast causing severe wind damage and flooding. The storm continued across Georgia as well as South Carolina and North Carolina as a tropical storm. The 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.
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 Idalia could include economic losses for the United States (which would be observed over an extended period of time) of $42.2 billion in total expenditures and $18.4 billion in gross product, with about $34.4 billion in total expenditures and $15.0 billion in gross product in Florida, Georgia, South Carolina, and North Carolina.
In addition to the enormous human costs, Hurricane Idalia 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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