September 3, 2019 09:30
Satellite Image of hurricane Dorian | Photo : NASA
The insured damage caused by hurricane Dorian are estimated to be approximately 25 billion us-dollars (G$ US), according to an analysis of the firm UBS relayed by the media, Reuters. The losses could even reach US$ 40-billion, according to the predictions.
The hurricane, which is expected to affect Florida, Georgia and the Carolinas, is now a category 4 with winds of 230 km/h with gusts of 275 km/h, according to the report Impact Forecasting ofAon. This is the second hurricane atlantic the strongest ever recorded.
The analysts warn that in addition to the violent winds, the storm risk of raising the water levels of 12 to 18 feet above normal levels. In addition, the rains that come are threatening to cause flash flooding ” life-threatening “, according to Aon.
The damage will weigh on GDP growth
Beth Ann Bovito, the chief economist for the United States in the S&P Global Ratings, however, argues that the losses caused by the hurricane should not have consequences on GDP growth in the third quarter.
“Although the increase in spending on drugs against the hurricanes (food, water, non-perishable food items) can generate a slight boost short-term economic growth is paltry compared to the economic loss related to the possible effects, even if Dorian does not reach the coast, plans cancelled for the Labour day that will not come back. This loss of economic activity related to business closures, travel plans cancelled, and disruption of the tourism activities during the holiday of Labour day, as people took precautions before the storm will weigh on real GDP growth for the quarter, ” she says.