3 weeks ago
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By SETH BORENSTEIN, Associated Press
HOUSTON (AP) — The deadly and widespread winter storm paralyzing much of the American East with ice, snow and cold is also taking a multi-billion dollar bite out of the U.S. economy, experts figure.
But how much? Economists and meteorologists are trying to get a handle on the disruption costs of winter weather disasters, which aren’t as easy to calculate as buildings destroyed by hurricanes, floods and fires.
“Events like this storm highlight just how interconnected our economy is with weather conditions. When major transportation hubs shut down or power grids fail, the cascading effects ripple through supply chains and business operations across multiple sectors simultaneously,” said Jacob Fooks, a research economist for Cooperative Institute for Research in the Atmosphere at Colorado State University.
Fooks said researchers don’t have consensus, but most estimates suggest severe weather events collectively can cut gross domestic product by 0.5% to 2% annually — which he called “very substantial.”
With U.S. GDP at about $30 trillion annually, that would be from $150 billion to $600 billion.
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