NYC Partnership economic impact analysis update, February 2002

NYC 9/11 Public Portal Document

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Economic Impact Analysis of the September 11th Attack on New York o < The New York City Economy Will Sustain m XI < A Net Loss of at Least $16 Billion m S

OVERVIEW

September 11th has had a profound impact on individual businesses and on New York City’s economy. Within a week of the terrorist attack, the New York City Partnership, representing the leadership of New York’s business community, launched this study to assess quickly the extent of the economic damage and to identify priorities to speed recovery. In an unprecedented collaboration, the Partnership assembled a team from seven leading management consulting firms -- A.T. Kearney, Bain & Company, Booz-Allen & Hamilton Inc., the Boston Consulting Group, KPMG LLP, McKinsey & Company, and PwC Consulting. Within six weeks, they completed the first “bottom up,’’ industry-by- industry analysis of the lost economic output and jobs attributable to the attack, over and above the effects of the economic slowdown in the national economy.

For each sector of the economy, the team developed an assessment of the impact of the attack and identified a set of priorities and policy recommendations that should be valuable to the industry as well as other policy makers. The team reviewed the analysis and vetted recommendations with business leaders in each sector to build consensus for the recommendations.

The team then combined the individual sector findings to form a complete view of the attack’s impact on the New York economy and to develop a set of priorities that the private sector and the public sector can use to accelerate recovery.

The research and analysis by the team of management consulting firms found that the city’s economy will sustain a gross loss of approximately $83 billion due to the attack, including $30 billion in capital losses, $14 billion in cleanup and related costs and $39 billion in loss of economic output to the economy. Moreover, the attack will cost the city an estimated 125,000 jobs during the fourth quarter of 2001. Some of these jobs will return, but the city will still have a loss of 57,000 jobs at the end of2003, over and beyond what it would have lost in the recession.

New York City Partnership and Chamber of Commerce 7

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