NYC Partnership economic impact analysis update, February 2002

NYC 9/11 Public Portal Document

New York City Partnership and Chamber of Commerce One Bonery Park Plaza, New York, NY 10004-1479 | phone: 212.493.7400 | fox: 212.344.3344 | web: www.nycp.org

WORKING TOGETHER TO ACCELERATE NEW YORK’S RECOVERY: Update of The NYC Partnership’s Economic Impact Analysis of the September 11th Attack on New York City February 11,2002 The New York City Partnership, relying on research by the seven management consulting firms that conducted the Partnership’s economic impact analysis last November, has taken a second look at New York’s efforts to recover from the September 11* terrorist attack. Here are the topline findings:

• The general dimensions of the impact - $83 billion in losses - are tracking projections, although job losses (originally a net of about 57,000 jobs lost due to the attack by 12/31/03) could be significantly greater than original estimates. • The manner in which financial services firms diversify the location of their operations - a decision largely made to avoid concentrating their talent and facilities in one place - is moving more Wall Street and Midtown jobs outside of the city’s five boroughs than originally projected. • Federal support is seeding economic recovery. However, two lingering problems — the failure to reimburse energy and telecom utilities for replacement infrastructure and the absence of a federal terrorism insurance policy — could be a brake on the pace of recovery. • Estimates of insured losses have risen sharply, reflecting the growth of liability claims. This development may signal that the economic impact of the attack is wider and deeper. • Air travel and retail sales, as expected, continue to lag the nation, a condition that could also be a drag on the pace of recovery. • The cleanup of the World Trade Center site as well as the pace at which mass transit services will be restored is moving much faster and at a lower cost than initially anticipated.

Last November, the New York City Partnership’s economic impact study estimated that the September 11th terrorist attack would result in $83 billion of damage to New York City’s economy. The 147-page study concluded that even after the payment of insurance claims, federal reimbursement for rescue, cleanup and New York City Partnership and Chamber of Commerce 1

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