Tags: Economic- Crisis | Hurricane | Irene | economy | storm

Experts: Irene May Boost Economy for Short Term

Monday, 29 Aug 2011 01:33 PM

By Newsmax Wires

Economists estimate that Hurricane Irene caused billions of dollars in damages. But they say the rebuilding effort can turn into a source of support for the stagnant economy, Politico reports.

“We are now upping our estimate of fourth-quarter GDP in the U.S. economy,” David Kotok, chairman of money management firm Cumberland Advisors, told the news service. “Billions will be spent on rebuilding and recovery. That will put some people back to work, at least temporarily.”

Cumberland forecasts annualized economic growth of 2-3 percent for the fourth quarter. That would represent quite a jump from the 1 percent rate in the second quarter.

Mark Merritt, president of crisis-management consulting firm Witt Associates, also sees the hurricane helping the economy in the months ahead.

“After a disaster, there’s always a short-term increase,” he told Politico. “There will be furniture bought, homes repaired, new carpet, new flooring, all the things affected by flooding.” But the benefit won’t last long as insurance companies and utilities raise their rates, he said.





© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

'Ebola Czar' Ron Klain Will Leave Job Feb. 15

Thursday, 29 Jan 2015 22:32 PM

The Obama administration's "Ebola czar" will leave his post on Feb. 15, although he said there is still work to do at er . . .

Texas Executes Killer Who Claimed Mental Impairment

Thursday, 29 Jan 2015 21:41 PM

The state of Texas on Thursday executed a convicted rapist-killer whose lawyers argued was severely mentally impaired, h . . .

Trump, O'Reilly Make Up After Digs at Each Other

Thursday, 29 Jan 2015 21:29 PM

Business mogul Donald Trump and Fox News host Bill O'Reilly were pals again after Trump appeared on Fox News Channel's " . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved