NYC Partnership economic impact analysis update, February 2002

NYC 9/11 Public Portal Document

Tragedy Ratufta In Gross Loss of $83 Billion for NYC

OroH Impact ~ Rmutts of Sector by Sector Analysis (In S Blinons)

$34B $83B

$19B 41%

LiorYtthar® of tots In Low* 83% Marti tatan Total NYC $30B 85%

Lower MMibaltan* •3%

Capital Shc^-ierm Lonn.te'n Toti. 2001 ;.2C2-20C3

Short* vtd lonfi<terTn cotta Inelwta cittn-up cotta of 514B

IOCBL: Sectari : NYC CompMtar tarn miyaB.

tUK Impaol of raSMaon m dty tn manua * Soulh of ChanOara Staat

Even after the effect of insurance payments and the federal emergency funds to defray the costs of rescue and cleanup, the New York City economy faces a net impact of at least $16 billion in lost economic output. This assessment is based on the assumption that New York’s recovery firom recession will match the pace of nation’s (usually the city lags the nation) and that insurance and federal emergency and recovery aid will be paid in a timely fashion and reflect real costs incurred.

Both insurance payments and federal reimbursement for the costs of cleanup will offset some of the gross costs of the attack The team estimated that insurance payments should amoimt to $37 billion. As a result of various multiplier effects, however, the insurance payments should have a positive impact of $47 billion on the city economy; the benefit of all of these payments will not be immediately available because at least $15 billion is likely to be paid in 2004 or later.

8 New York City Partnership and Chamber of Commerce

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