Storm Sandy to cost New York state economy up to $18 billion: government

Fri Nov 2, 2012 3:56pm EDT

A largely powerless downtown Manhattan stands under a night sky due to a power blackout caused by Hurricane Sandy in New York October 31, 2012. REUTERS/Lucas Jackson

A largely powerless downtown Manhattan stands under a night sky due to a power blackout caused by Hurricane Sandy in New York October 31, 2012.

Credit: Reuters/Lucas Jackson

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(Reuters) - Temporary losses to New York state's economy from super storm Sandy could reach $18 billion, State Comptroller Thomas DiNapoli said on Friday.

Disruptions to daily business -- from Wall Street in New York City to Main Street shops on Long Island and upstate -- could cause between $15 billion and $18 billion in lost economic activity, according to DiNapoli's preliminary estimates.

Not all the damage to the state's economy is expected to be permanent, however, as rebuilding efforts should provide a boost with the sale of materials and increased employment, a DiNapoli spokeswoman said

Sandy made landfall in neighboring New Jersey on Monday as it barreled across the Eastern part of the continent. It crippled power and transportation systems on the East Coast, and killed at least 102 people in the United States and Canada and at least 69 people in the Caribbean.

Before the storm, New York state's tax revenue collections were already $436 million shy of initial projections. Tax revenues could be further dampened because of Sandy, said DiNapoli, who will issue his upcoming fiscal year outlook next week.

New York City Comptroller John Liu told Reuters on Wednesday that Sandy is costing the Big Apple up to $200 million a day in permanent economic losses, though the number should top out at about $1 billion.

(Reporting by Hilary Russ; editing by Andrew Hay)

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Comments (1)
totherepublic wrote:
18b. A drop in the bucket to Wall Street-get it from them.

Nov 02, 2012 4:57pm EDT  --  Report as abuse
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