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

The Impact of the being Trade Center Attacks on New York urban centers Economy A study by the New York City Partnership and the Chamber of Commerce estimates that New York Citys saving result brook a gross loss of about $83 billion and leave out 57,000 jobs over three twelvemonths as a result of the World Trade Center attacks. The study, which was released Nov. 15, said even after payment of damages claims and federal reimbursement for rescue, cleanup and infrastructure repair costs, the lowest damage to the economy is likely to be at least $16 billion in lost economic output. If third-party reimbursement is delayed or inadequate, or if New York lags behind(predicate) the nation in recovery from the national recession, the loss could be farther greater. The report estimates that 125,000 jobs would be lost 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 facilitate have a net los s 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 supply and evaluate how the attacks of Sept. 11 would impact the main drivers of the citys economy, especially the financial work diligence. Consultancies including A.T. Kearney, Bain & Company, Booz Allen Hamilton, KPMG, McKinsey & Company, Boston Consulting Group and PwC Consulting worked on the report. The group in turn worked with reconcile agencies as well as the Federal Reserve Bank to beak economic data and provide assesssments of 14 separate private industry sectors. Not surprisingly, the study showed that lower Manhattan absorbed the greatest damage. In admission to the thousands of lives that were lost in the destruction of the World Trade Center, the downtown character lost 100,000 jobs along with close to 30 percent of office lay in the wake of the attack. Thi s puts at risk many of the 270,000 jobs that are still located in the area south of Chambers Street. The financial serve 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 short term.