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

Related Topics

(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)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
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
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

Pictures

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.