Hurricane Maria could be a $95 billion storm for Puerto Rico

Hurricane Maria could be a $95 billion storm for Puerto Rico – Sep. 28, 2017

Relief supplies stuck at Puerto Rico port

Hurricane Maria could cost Puerto Rico $45 billion to $95 billion in damage — a devastating blow to the island’s already ailing economy.

The high end of the range, released Thursday by Moody’s Analytics, represents almost an entire year’s economic output for Puerto Rico.

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The estimate underscores “why officials are now suggesting that its economy may be set back decades,” Adam Kamins, a senior economist at the firm, wrote in an analysis.

The damage estimate from Moody’s is the highest yet. A more conservative estimate earlier this week from the disaster research group Enki Research put the total at $30 billion.

Maria has been catastrophic for Puerto Rico. People are scrambling for food, water, fuel and cash. Almost the entire island is without power, and outages are expected to last for months in some areas.

Related: Who will help Puerto Rico?

The Moody’s estimate says as much as $40 billion could be lost in economic output because of impassable roads and lost power. Property damage could total $55 billion.

For comparison: Moody’s estimates that Hurricanes Irma and Harvey combined caused more than $150 billion in damage after those storms hit major U.S. cities in Texas, Florida and Georgia.

“Given that Harvey and Irma disrupted far larger and more vibrant economies than that of Puerto Rico, this reflects the stunning amount of damage that Maria has wrought,” Kamins said.

Related: The people of Puerto Rico are in a desperate scramble for cash

Puerto Rico’s economy was already struggling. The island has been in recession for 11 years and has lost 10% of its population in that time. In May, it filed the largest municipal bankruptcy in U.S. history.

Kamins said fallout from Hurricane Maria could make it all worse. Puerto Ricans are American citizens and can freely move to the mainland.

“The end result could be a permanent increase in the rate of population decline, with many of those who remain too poor to move elsewhere,” he said. “Puerto Rico’s already murky future is now even more in doubt.”

CNNMoney (New York) First published September 28, 2017: 12:45 PM ET

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Nino Plevnik
I am in the Internet marketing area for some time now. I mostly deal with Affiliate Marketing and Domain Flipping. It took me a while until I figured it out. Now I want to transfer my knowledge to beginners, so they can start earn money online as quickly (and painlessly) as possible.
Nino Plevnik
About Nino Plevnik 171 Articles
I am in the Internet marketing area for some time now. I mostly deal with Affiliate Marketing and Domain Flipping. It took me a while until I figured it out. Now I want to transfer my knowledge to beginners, so they can start earn money online as quickly (and painlessly) as possible.

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