The Impact of the World Trade Center Attacks on New York City's Economy
A study by the New York City Partnership and the Chamber of Commerce estimates that New York City's economy will sustain a gross loss of about $83 billion and lose 57,000 jobs over three years as a result of the World Trade Center attacks.
The study, which was released Nov. 15, said even after payment of insurance claims and federal reimbursement for rescue, cleanup and infrastructure repair costs, the net 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 the nation in recovery from ...view middle of the document...
"This puts at risk many of the 270,000 jobs that are still located in the area south of Chambers Street."
The financial services industry, which generates 24 percent of the city's $440 billion annual economic output and 14 percent of the city's tax revenue, was by the far the most impacted in the short term.
From Sept. 11 through year end, financial services will account for $4.2 billion in economic output losses, the report said. "Seven major financial firms have been forced to temporarily relocate. Of the financial services jobs that have left lower Manhattan, about 32,400 have relocated within the city and 19,000 have left the city, at least temporarily."
Because of a drop in international traffic, however, the damage to the tourism and retail sectors was even more stark, according to the report.
New York's travel and tourism industry, which brings in annual revenue of $34 billion, is expected to lose between $7 billion to $11 billion in revenues by the end of 2003 and is likely to lose 25,000 jobs by the end of the year.
New York's retail base (department stores, specialty shops and other retail outlets) of $51 billion is expected to lose $7.5 billion by 2003 as a result of Sept. 11 drop-off in shopping.
NYCP president Kathryn Wylde said although the economic damage is massive, it is manageable if the public and private sectors work quickly.
"We also need...