Hurricanes Harvey and Irma are expected to have a significant impact on 3rd quarter GDP. Estimates now fall in the range of 2% to 2.6%. It is possible that the short run impact could be made up as rebuilding starts. Most economists see Q4 getting a boost. One clear positive: The U.S. economy was doing well before the hurricanes hit and , in fact, had been estimated to grow near 3%, almost a point above trend.
- Goldman Sachs now believe’s GDP will increase at just a 2% rate this quarter after cutting its estimates by 0.8%.
- Moody’s estimates the combined cost of both storms, including property damage and lost output, at $150 billion to $200 billion.