Hurricane Irma Impact

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THE IMPACT OF HURRICAN IRMA ON THE UNITED STATES ECONOMY INCLUDING TO THE VIRGIN ISLAND

Monica Providence
Mgt 213
Midterm Exam

Dr. Professor Paul Flemming
University of the Virgin Islands
November 30th, 2017

THE IMPACT OF HURRICANE IRMA ON THE UNITED STATES OF AMERICA INCLUDING THE US VIRGIN ISLANDS

Hurricane is one of the most damaging natural disaster. They are terrifying to the occupants in its part as well as on the economy. The United States including its territories are vulnerable to hurricane damage, because one-third of its gross domestic product is from states along the Gulf and Atlantic Coastline (US Economy).
Hurricane Irma with such magnitude of a category 5 hurricane creates a vast effect on the economy of
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Florida economy depends on a range of industries, including tourism, ports, business services and health care, now they all magnify the impact of hurricane Irma.
Hurricane Irma has not only devastated thousands of lives and destroyed billions of dollars of property worth in Florida but it has also created long term damage on the economy and on the people on a whole. It is said that Irma caused between $5 billion and $9 million in commercial and industrial real estate damage.
As was told by Economist Diane Swonk of DS Economic, hurricane Irma could slow the overall U.S. Economic growth to a 1.8 percent and this is in comparison of a 2.8 projection before the storm. Unemployment is now tracking near or below the average national level. The loss of lives, property damages, homelessness and evacuations, hike in gas prices, increase unemployment and lower production are some of the direct impact that can result from hurricane Irma. I believe that the year 2017 would be recorded and remained as one of the most catastrophic disaster the United States has ever
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“It’s a do or die”.
According to Fox news report, the extent of the damage to Florida and US Virgin Islands from hurricane Irma remains unclear because estimate on these US State/islands are still ongoing and could head into hundreds of millions to billions of dollars.
Many insurance companies can easily go bankrupt as a result of the impact of Irma, one can only imagine the huge amounts that are being paid out to persons who would have lost their worldly possessions and to beneficiaries who have lost loved ones; as such, home owners will see a hike in premium payments going forward. Ironically, this hike in premium payments will not be limited to the affected state and territories, but in all countries/islands where such companies have branches.
As noted earlier, tourism is one of the biggest business in Florida and the US Virgin islands, and with most of its tourist attraction destroyed, it leaves the state and territories still shaky about the future of their economy.
Hurricane Irma have not only impacted the economy but more so the residents who are still trying to come to grip being a survivor of this catastrophic
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