The Macroeconomic Effects of Hurricane Katrina (CRS Report for Congress)
| Release Date |
Sept. 13, 2005 |
| Report Number |
RS22260 |
| Report Type |
Report |
| Authors |
Brian W. Cashell, Government and Finance Division |
| Source Agency |
Congressional Research Service |
Summary:
Hurricane Katrina will have substantial and long-term effects on the economies of southern
Louisiana and Mississippi. But, given that those two states account for just 2% of total U.S. gross
domestic product, the effects on the national economy will be much less dramatic than the effects
on the region. Since the storm, a number of economic forecasters have adjusted their predictions to
reflect its effects. Most indicate that, as a result of the storm, national economic growth is expected
to be 0.5%-1.0% slower than in the second half of 2005. However, as economic activity recovers
in the affected region, and rebuilding begins, growth in the first half of 2006 is now expected to be
more rapid than was previously forecast. This report will be updated as reliable data become
available.
