Texas will long to recover from the effects of Harvey, but to replace the destructive hurricane already came a new problem — Irma. A natural disaster’s going to strike a powerful blow to Florida and then turn North into the state.
Today, no one doubts the catastrophic consequences. But atypical storm of Atlantic hurricane season has not even reached its peak — in front of the frightening unknown, supported not the most favorable forecasts. It would seem, is not the time to think about money when hundreds of lives were in danger. But sooner or later everything will subside, and life will flow as usual.
How will the abundance of natural disasters on the economy and the welfare of each of its inhabitants? What will happen to prices in the stores and at the gas station?
The economy as a whole
The forecasts are favourable, the situation will not change in a significant way. According to David Fiorenza, a teacher from the School of business at Villanova University for some time, you may experience instability, but then the economy normalizes.
The worst and most likely consequence of a hurricane — the loss of jobs and reduced wages in Florida, Georgia and parts of Carolina. Accordingly, the Treasury will receive less tax payments.
However, because of the need to restore the destroyed infrastructure is expected to rise in the construction industry. In all States there are enough companies that produce construction materials, and they will win. Thus, the country will remain the economic balance.
Gasoline
U.S. residents are concerned about the price of fuel for more than two weeks since Harvey struck oil-refining industry of Texas. Fortunately, local businesses recover their jobs.
Experts are assured: if Irma or any other hurricane will bypass the TX side, gasoline prices will remain at current levels. The destruction in Florida will have no impact on the cost of fuel, because there are not located refineries. Supply of fuel in the Caribbean is also in no danger — it is transported there on ships, not on the pipe, which could hurt Irma.
Insurance policies
The cost of property insurance and vehicles may increase. As a rule, it is not enough of a disaster, even destructive.
«To have a significant impact on the price of your insurance, storm should lead to economic losses in the range of 50 — 100 billions of dollars,» says Mike Christian, CEO of risk management Risk Strategies.
According to preliminary forecasts of Accuweather President Dr. Joel N. Myers, Irma will bring the damage of such magnitude.
Groceries and clothing
If Harvey did not cause significant damage to the agricultural sector, the influence of Irma can be substantial.
Florida grows about half the cane sugar in the country and more than two-thirds of the oranges; a Georgia and Carolina accounts for about a quarter of cotton production. Therefore, sugar, pastry, fruit, and things will rise in price.
According to the materials of U. S. News Money
