The Impact of the World Trade Center Attacks on New York Citys Economy :: Economics

The Impact of the World share Center Attacks on new(a) York Citys Economy A study by the brisk York City alliance and the Chamber of Commerce estimates that New York Citys economy will sustain a gross firing of about $83 billion and lose 57,000 jobs all over three years as a result of the World Trade Center attacks. The study, which was released Nov. 15, verbalise even after payment of insurance claims and republical reimbursement for rescue, cleanup and infrastructure repair costs, the net damage to the economy is apt(predicate) to be at least $16 billion in wooly-minded sparing output. If third-party reimbursement is delayed or inadequate, or if New York lags behind the nation in recovery from the national recession, the loss could be far greater. The field of study estimates that 125,000 jobs would be incapacitated in the fourth quarter of this year as a direct result of the attack. While many of these jobs will return, New York City will still have a net loss of approximately 57,000 jobs attributable to the attack at the end of 2003, the partnership said in the report. The NYCP brought together a group of consultants and economists to help tally and appraise how the attacks of Sept. 11 would impact the main drivers of the citys economy, especially the financial services industry. Consultancies including A.T. Kearney, Bain & Company, Booz Allen Hamilton, KPMG, McKinsey & Company, capital of Massachusetts Consulting Group and PwC Consulting worked on the report. The group in turn worked with state agencies as well as the Federal Reserve Bank to cull economic data and provide assesssments of 14 separate private industry sectors. non surprisingly, the study showed that lower Manhattan absorbed the greatest damage. In addition to the thousands of lives that were confused in the destruction of the World Trade Center, the downtown region lost 100,000 jobs along with close to 30 pct of office space in the wake of th e attack. This puts at risk many of the 270,000 jobs that are still locate in the area south of Chambers Street. The financial services industry, which generates 24 percent of the citys $440 billion annual economic output and 14 percent of the citys tax revenue, was by the far the most impacted in the minuscule term.