Hurricanes Harvey, Maria, and Irma to Negatively Impact Third Quarter U.S. GDP Growth

 

U.S. Economic Outlook Slashed for Third Quarter

The Federal Reserve does not think the devastating effects of Hurricane Irma and Hurricane Maria will have a long-lasting influence on the U.S. economy. But when it comes to the near term, Irma and Maria are expected to have a huge impact on U.S. gross domestic product (GDP) growth.

In late August, Hurricane Harvey pounded Texas and Louisiana, with damage pegged at around $180.0 billion.1 A couple weeks later, Hurricane Irma slammed the Caribbean and wreaked havoc in Florida. The total cost of Hurricane Irma could be as high as $300.0 billion. Insurance firms could be liable for between $100.0 billion and $150.0 billion.2

In late September, Hurricane Maria flattened Puerto Rico and left the island without food, water, or electricity. In fact, it could take as six months for the entire tiny island to get its electricity grid up and running. The total cost of Hurricane Maria to the commonwealth of Puerto Rico is pegged at $45.0 billion to $95.0 billion.3

The massive damage to agriculture, businesses, homes, property, infrastructure, and tourism has caused many economists to reduce their third-quarter GDP outlook for the U.S. economy. Oxford Economics trimmed its third-quarter GDP outlook by 0.4 percentage points on the low end of the range, with Goldman Sachs shaving 0.8 percentage points on the high end.

Most economists see the biggest hit coming from Hurricane Harvey with only modest reduction of 0.1 or 0.2 points from Hurricane Irma.

Before the impact of Hurricanes Harvey and Irma, the U.S. economy was showing signs of sustainable growth. In fact, many expected the U.S. economy to advance as much as three percent in the third quarter. But after Hurricane Harvey and Hurricane Irma, Goldman Sachs’ 0.8% trim brings U.S. third-quarter GDP estimate down to around two percent. The forecast from Macroeconomic Advisors has been cut by 0.7 percentage points, bringing third-quarter U.S. GDP estimates down to 2.3%.

What will happen in the fourth quarter remains to be seen. But many economists think U.S. fourth-quarter GDP could get a boost as rebuilding begins. Some sectors are expected to perform better than others though.

Learn-To-Trade.com, Canada’s Leader in Stock Market Trading Courses

Natural disasters can seriously impact the economy and GDP on both a state and national level. The short-term damage is expected to be severe with regards to the U.S. economy and GDP growth in the third quarter. Longer-term, though, recovery spending could lead to higher output and GDP growth. They key is knowing how those sectors and industries will perform at different times. The trading professionals at Learn-To-Trade.com can teach you how to both protect and build your wealth during trying times.

Learn-To-Trade.com is Canada’s oldest and leading provider of stock market trading courses. With decades of experience, the trading experts at Learn-To-Trade.com can teach investors how to trade more confidently and profit consistently, regardless of skill level.

At Learn-To-Trade.com, we’ll show you how to read charts and teach you about technical, fundamentals, risk management, and capital preservation. You will also learn about commodities, futures, stock options, foreign markets, stock index trading, and forex (currency) trading.

At Learn-To-Trade.com, we understand that no two investors are alike. That’s why we have a unique Lifetime Membership that allows you to re-attend any part of the program as often as you’d like.

To learn more about Learn-To-Trade.com’s stock market trading course, contact us at 416-510-5560 or by e-mail at info@learn-to-trade.com.

Sources:

  1. “Hurricane Harvey Damages Could Cost up to $180 Billion,” Fortune, September 3, 2017; http://fortune.com/2017/09/03/hurricane-harvey-damages-cost/.
  2. “Economic cost of Hurricane Irma ‘could reach $300bn,’” The Guardian, September 10, 2017; https://www.theguardian.com/business/2017/sep/10/economic-cost-of-hurricane-irma-could-reach-300bn.
  3. “Hurricane Maria Caused as Much as $85 Billion in Insured Losses, AIR Worldwide Says,” The Wall Street Journal, September 25, 2017; https://www.wsj.com/articles/hurricane-maria-caused-as-much-as-85-billion-in-insured-losses-air-worldwide-says-1506371305?mg=prod/accounts-wsj.

Photo Credit: iStock.com/Violka08

The following two tabs change content below.
George Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members. Add me to your G+

Testimonial 1

Don’t hesitate jump into it right now. You will be glad you did!

Susan C

Learn To Trade
4.0
2014-08-19T04:45:40-04:00

Susan C

Don’t hesitate jump into it right now. You will be glad you did!

Testimonials 2

The ongoing support has been the reason for my success

Patrick L

Learn To Trade
4.0
2014-08-19T04:46:33-04:00

Patrick L

The ongoing support has been the reason for my success

Testimonial 3

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Steven R

Learn To Trade
4.0
2014-08-20T02:56:18-04:00

Steven R

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Joseph L

Learn To Trade
4.0
2014-08-20T10:36:37-04:00

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Harley S

The course is amazing. Where were you 30 years ago?

Harley S

Learn To Trade
5.0
2014-08-20T10:37:39-04:00

Harley S

The course is amazing. Where were you 30 years ago?

Partick M

I learned the basics I needed to trade successfully.

Partick M

Learn To Trade
4.0
2014-08-20T10:38:34-04:00

Partick M

I learned the basics I needed to trade successfully.

Iouri G

I like making money. I’m very happy, so far so good

Iouri G

Learn To Trade
4.0
2014-08-20T10:39:27-04:00

Iouri G

I like making money. I’m very happy, so far so good

Akos B

I learned things it would have taken me years to figure out

Akos B

Learn To Trade
5.0
2014-08-20T10:40:05-04:00

Akos B

I learned things it would have taken me years to figure out

Robert B

There is always someone ready to answer my questions.

Robert B

Learn To Trade
4.0
2014-08-20T10:40:59-04:00

Robert B

There is always someone ready to answer my questions.

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Uldus V

Learn To Trade
5.0
2014-08-20T10:41:40-04:00

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Dean K

I wish I knew about trading as a business years ago!

Dean K

Learn To Trade
4.0
2014-08-20T10:42:24-04:00

Dean K

I wish I knew about trading as a business years ago!

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Peter P

Learn To Trade
4.0
2014-08-20T10:42:57-04:00

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Shelley P

Learn To Trade
5.0
2014-08-20T10:34:39-04:00

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Amir

Hi George,

I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
Learn To Trade
5.0
2016-10-07T08:56:52-04:00
Hi George, I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
4.0
14