Moody’s Analytics has slashed its third quarter forecast for gross domestic product by half a point to 2.5 percent while predicting that damage from hurricanes Irma and Harvey might total between $150 billion and $200 billion.
In addition, the economy could suffer another $20 billion to $30 billion in lost output.
Moody’s Chief Mark Zandi explained to CNBC that the estimate could change substantially in the future.
“Both in property damage and lost output, the Moody’s estimate puts the combined costs of the two catastrophic storms on par with Hurricane Katrina. Moody’s had previously estimated the total cost of Harvey between $86 and $108 billion. Irma is estimated to cost between $64 and $92 billion,” CNBC reported.
“Moody’s expects fourth-quarter growth to be boosted by rebuilding efforts from the two storms but notes in its report, ‘The economic fallout from the storms critically depends on how much insurance money and