The recent Hurricane Harvey that has left Houston and many other regions of Texas and neighboring states devastated is expected to be the costliest natural disaster in our country’s history. While having an increasing personal impact to those affected, economists believe that the overall economy’s growth won’t take as big of a hit as initially thought. Harvey has caused about $160 million in insured losses in USD, which is $80 million more than the second worst natural disaster the US has faced, Hurricane Katrina in 2005.

            Texas’ oil refinery industry produces nearly one-third of the country's crude oil and due the slowed down the flow of gas from here to the rest of the country, gas prices have, on average, rose from $2.34 to $2.40 within just a week nationwide. This has caused the demand for crude oil because Texas simply cannot use it due to the damages they’ve incurred, West Texas Intermediate crude has fallen 4% this week. This has caused the real GDP growth to drag by -20 bps due to the disruption in exports.

            It is also expected that jobless claims are going to rise dramatically in the coming weeks. Harvey is also expected to have an immediate impact on the auto sector due to almost half a million cars/trucks having to be scraped due to the flooding. Auto insurers will be dealing with claims for several months on.

http://www.businessinsider.com/hurricane-harvey-economic-impact-2017-8/#the-cost-of-harvey-1