NYC Partnership economic impact analysis update, February 2002

NYC 9/11 Public Portal Document

m X m O c < m New York City Partnership and Chamber of Commerce OuliHMyrKhrira, Hew York, HX IMB4-H7, I yheao: 2n.«3.74N | fex: 3U.344.3344 | web: www.oyrp.iirs w c 3 S > XJ -< Economic Impact Analysis of the September 11th Attack on New York EXECUTIVE SUMMARY

The September 11th attack caused massive damage to New York’s economy. This damage can be managed if we act quickly. The New York business community stands ready to work with government at all levels, as well as with other stakeholders, to rebuild the New York economy and restore Lower Manhattan.

Following the terrorist attack, New York has struggled to understand the specific economic effects and what can be done to cope with them. Now, a team of leading consultants and economists organized by the New York City Partnership has evaluated how much the attack stands to affect the main sectors of the New York economy, and has recommended specific steps that the private sector and government can take to achieve a full recovery. After examining and quantifying the impact of the attack on each industry sector, the team found:

❖ The economic impact of the attack is likely to total $83 billion in damage to New York City’s economy. Even after payment of insurance claims and federal reimbursement for rescue, cleanup and infrastructure repair costs, the net damage to the economy is likely to be at least $16 billion. If third-party reimbursement is delayed or inadequate, or if New York lags behind the nation in recovery from the national recession, the loss could be far greater.

❖ An estimated 125,000 jobs will be lost in the fourth quarter of2001 as a direct result of the attack. While many of these jobs will return. New York City will still have a net loss of approximately 57,000 jobs attributable to the attack at the end of2003.

❖ The financial services, tourism and retail sectors felt the greatest impact; small businesses in all sectors were and will continue to be the hardest hit.

❖ Damage is concentrated in Lower Manhattan, which lost 100,000 jobs and almost 30% of its office space in the wake of the attack.

New York City Partnership and Chamber of Commerce 5

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