Sandy clean-up gives GDP a boost
Superstorm Sandy's impact will reduce US GDP in the fourth quarter, but reconstruction efforts will see it boosted in early 2013
Damage and disruption by Superstorm Sandy, which hit the American northeast coast last week, will reduce US GDP in the fourth quarter, but reconstruction efforts will boost it again in the first half of 2013. Barclays estimates that the storm will knock 0.2-0.3% off GDP in the three months to December 2012, while Goldman Sachs puts the figure at 0.5%, the Financial Times reports. However, Goldman says the US economy will rebound by "slightly more" than 0.5% in the first quarter of 2013. The total economic cost of Sandy has been estimated at $30bn to $50bn by disaster consultant Eqecat.