Wednesday, March 15, 2017

The Cost of the Snowstorm

The winter storm that’s blasting our area may end up being only a one-day affair, but it may be  severe enough to make a noticeable dent in  the economy. The storm is so severe, the disruptions from it will likely show up in the first-quarter report on the growth of the U.S. economy, research firm Oxford Economics predicted.

Oxford estimates that disruptions to business activity could shave up to 0.2 percentage points off of first quarter GDP. They note that their forecast for the quarter has been an already low 1.1 percent.

The Northeast region contributes roughly $3 trillion in annual output to the U.S. GDP, which equals about $12 billion daily. Assuming a loss of 10  to 20 percent of overall output on Tuesday, that would add up to a loss of about $2.4 billion worth of activity.

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