Mississippi Economic Outlook: Reconstruction Boom to Propel Economy
Business Perspectives › Vol. 17 Nbr. 4, January 2006
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Summary
Hurricane Katrina's devastating hit Aug 29, 2005 brought a sharp drop in economic activity, and destroyed a significant portion of the Coast's capital stock. However, it will also generate unprecedented construction activity on the coast as billions of dollars worth of housing, commercial property and infrastructure are replaced and repaired. As 2005 draws to a close, recovery efforts are focused on debris removal and clean up, provision of assistance and services to Coast residents, resolution of insurance claims, and reconstruction planning. Federal funds and insurance payments, in addition to private and local government spending, are financing the recovery, which is expected to cost over $20 billion. Employment figures show a 4.9% drop in payroll employment in Mississippi between August and September. The setback from Hurricane Katrina will be only temporary. Over the coming five years, real Gross State Product will grow at an average annual rate of 3.0% and employment will grow at an average rate of 1.3%.
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Mississippi Economic Outlook: Reconstruction Boom to Propel Economy
Hurricane Katrina's devastating hit August 29, 2005 brought a sharp drop in economic activity, and destroyed a significant portion of the Coast's capital stock. However, it will also generate unprecedented construction activity on the Coast as billions of dollars worth of housing, commercial property and infrastructure are replaced and repaired.
Once rebuilding is fully underway in 2006, the construction boom will spark the highest growth rate of output and employment that the state has seen in years. There will be more persons employed in the state over the coming years than there would have been if Hurricane Katrina had not occurred.Federal funds and insurance payments, in addition to state funds and private assistance, will finance the rebuilding and recovery effort, which is expected to exceed $20 billion. Insured losses alone have been estimated at $9.9 billion by Pr...See the full content of this document
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