According to Goldman Sachs economists, when hurricanes will take away from the economy we will see return it through the economic growth that countries will mark. While Hurricane Irma moved to Florida, Goldman adjusted its GDP forecast to -0.8/-1.0% for the third quarter of this year. However, the next three quarters will receive a strong boost from recovery when energy consumption and building materials for building new homes increase significantly. Such events are characterized by initial, very low growth, followed by record development periods.
Goldman believes that the third quarter of 2017 will bring GDP down from -0.8% to -1.0%, then in Q4 the economy is expected to grow by 0.3% and by the end of the first half of 2018 GDP will reach 2.7%.
Earlier last week, Bank Of America Corp. said the recovery from Hurricane Harvey could be marked by GDP as early as 2018.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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