An early estimate from The Perryman Group on the economic impact of Hurricane Beryl reveals that it could cost the State of Texas more than $4 billion and the country nearly $7 billion in total expenditures.
The group cites the storm’s 80-mile-per-hour winds and eight inches of rainfall in some parts of the storm’s path, leading to flooding, downed trees, power outages, and extensive structural damage. It also considered the significant business losses that largely cannot be recouped for the time they were closed, either because they were without power or available staff.
…the net impact of Hurricane Beryl could lead to economic losses (which would be observed over an extended period of time) including $4.6 billion in total expenditures, $2.0 billion in gross product, and $1.3 billion in earnings in Texas. For the United States, losses could total about $7.0 billion in total expenditures, $3.0 billion in gross product, and $2.0 billion in earnings (including effects within Texas as well as spillover to other areas).
The Perryman Group did note, however, that the recovery efforts in storm-affected areas will likely lead to a surge, though minor, in economic activity in the coming weeks and months.
“Replacing personal items, vehicles, furniture, and everything else will increase retail activity in the region. These benefits partially offset the overall economic losses,” according to the report.
The report also noted that while the economic losses are significant, it is only one part, and the loss of life both during and after the storm can’t be overlooked and should be the primary concern. It is reported that there were at least 20 deaths in the Houston area due to the storm.
The Texas Windstorm Insurance Association said it has received about 16,000 windstorm claims and expects the Category 1 storm could cost about half of its $450 million Catastrophe Reserve Trust Fund, according to Chief Actuary Jim Murphy.
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