Hurricane Harvey, the Category 4 storm that slammed the Texas Gulf Coast in mid-August, could ultimately shave as much as 1 percent off the nation's economic growth in the third quarter, according to analysts at Goldman Sachs.
"Modeling these effects, we estimate that hurricane-related disruptions could reduce 3Q [gross domestic product] growth by as much as 1 percentage point," Goldman wrote, as reported by CNBC.
Higher gas prices and sharp spikes in unemployment in the affected regions are big contributors to the forecasted decline in the nation's GDP growth.
The L.A. Times reported that Moody's estimated Harvey's price tag at anywhere from $81 billion to $108 billion in losses, most of that to real estate.
The analysis by Goldman Sachs also took Hurricane Irma into account, which began its long crawl up the western coast of Florida on Sunday.
"Given potentially sizeable growth effects from Harvey — and with Irma risks now moving to center stage — we are lowering our Q3 GDP tracking estimate by 0.8pp to +2.0 percent," the analysts said. "However, we expect this weakness to reverse over the subsequent three quarters, more than recouping the lost output."
Because Harvey hit closer to Houston, the storm created a slowdown in the production of oil and natural gas, as well as refinery production, which briefly caused a spike in gasoline prices across the nation.
Hurricane Jose, which had been developing right behind Irma, has moved well north of Puerto Rico, and is expected to weaken significantly in the next two days.