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Hurricanes cost US $260 billion

Hurricanes that have been under the influence of the United States since August have been heavy in the country.

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Hurricanes cost US $260 billion

In August, Hurricane Harvey, who struck state of Texas last month, hurricane of Irma, who influenced state of Florida last week, and US-based Puerto Rico Island in United States, total cost of 260 billion dollars passed.

  • According to Economic research agency Moody's Analytics data, damage caused by Hurricane Harvey found 87 billion dollars, while Irma's hurricane 56.5 billion dollars, and Maria hurricane, resulted in a loss of 55 billion dollars in property.

Hurricanes also adversely influenced economic production in those areas.

Hurricane Harvey was particularly negatively affecting oil production and refinery industries in state of Texas, while Hurricane Irma also hit tourism and service sectors in States of Florida and Georgia, and agriculture and tourism sectors in Puerto Rico, Hurricane Maria.

While Hurricanes of Harvey and Irma lead to $10 billion in economic production and a loss of $14bn, hurricane Maria has led to an economic loss of about 40 billion dollars.

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  • Thus, given losses in goods and economic production, total cost of all three hurricanes is 262.5 billion, while this amount corresponds to about 1.4 per cent of U.S. gross domestic product (GDP), which is 18.5 trillion dollars last year.

The total cost of Hurricane Katrina, which took effect in August 2005, was $174.5 billion, while Sandy hurricane in October 2012 cost 73 billion dollars.

Oil production fell hard

The state of Texas, considered as U.S. oil production and refinery center, was adversely affected by Harvey hurricane of Gulf of Mexico and coast of this province.

  • According to US Energy Information Administration (EIA), country's crude oil production in early September fell from 9.53 million barrels to 8.78 million by previous week, averaging 750 thousand barrels per day.

Furrmore, while oil imports from shores of Gulf of Mexico significantly decreased, state had a shortage of gasoline and diesel due to refineries that suspended ir activities. The country's crude oil production Roundup took about 3 weeks, while refineries began to operate with full capacity 1 month.

Goldman SACHS lowers growth forecast

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Or than total costs of se hurricanes, it is estimated that US economy will have adverse effects.

U.S. investment banking giant Goldman Sachs announced last month that country's third quarter growth forecast was revised downward due to Harvey and Irma's hurricanes. The bank, due to high cost and loss of labour force created by hurricanes, U.S. 's third quarter of this year's growth forecast of 2.8% to 2 percent was downloaded.

Fed does not see impact in medium term

On or hand, US central Bank (Fed), after a two-day meeting on September 20th, argued that Hurricanes would not have a negative impact on country's economy in medium term.

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  • The statement said that Hurricanes could negatively affect economic activities in short term, " medium-term storms seem unlikely to change route of national economy financially," statement stated.

The president of Fed New York Branch, William Dudley, said on September 8th that hurricanes under influence of United States would boost economic activity in country.

Stressing that hurricanes are human and economically damaging in first place, Dudley said, "The first effects will be very volatile. Long-term effects of se disasters, unfortunately, increase economic activity. You need to rebuild everything storms have damaged, "he said.

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