NYC Partnership economic impact analysis update, February 2002

NYC 9/11 Public Portal Document

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Similarly, the federal government should fully reimburse the city for the cost of rescue and cleanup, which is currently estimated to be $14 billion. The impact of this aid, after the multiplier effect, would be about $20 billion. Combined, these two sources should have a positive impact of $67 billion on economic output. Under this set of assumptions, the total net impact of September 11th on New York City’s economy would be at least $16 billion.

If these assumptions pan out, the impact of the attack on New York City’s economy will be large, but manageable. The gross city product, a measure of total economic output, is approximately $440 billion a year.

Obviously, the effects of the attack and the national economic slowdown will result in significant losses in New York City and New York State tax revenues, which are not addressed in this report.

THE LOWER MANHATTAN ECONOMY SUSTAINED THE GREATEST DAMAGE

The destruction of the World Trade Center had the greatest impact on Lower Manhattan, generally defined as the area south of Chambers Street, which for decades has been the nation’s third largest business district, after Midtown New York and Chicago. The area, full of landmarks and the history of colonial America, has long provided businesses in New York with highly competitive rents, attracting the nation’s leading financial services companies, small business and emerging industries, such as enterprise software. Prior to September 11th, approximately 50% of those who lived in Battery Park City’s apartment buildings walked to work. During the past five years, the high-tech start-ups and young

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