Question

The effects of hurricane Dorian in the Bahamas we’re amount the worst experience for any natural disaster in the country. Hurricane Dorian struck the Abaco Islands as a category five hurricane on September 1 and a day later hit Grand Bahama Island at the same category. The hurricane then stalled over Grand Bahama for another day, finally pulling away from the island on September 3.Damage amounted to US $3.4 billion, and there were at least 78 deaths in the country. Another 282 people left missing after the hurricane. Enter damage amounted to US $3.4 billion, and there were at least 70 deaths in the country. Another 282 people left missing after the hurricane.

A. From the above excerpt, evaluate the economic impact of hurricane Dorian on the Bahamian economy using the macroeconomic tools

Answer 1

Between 1 and 3 September Hurricane Dorian struck Grand Bahama and Abaco with pushing wind winds and storm surges, with island of the New Providence also suffering some impacts. Inadequate construction and infrastructure located in vulnerable areas exacerbated the storm impacts.

The numbers of death caused by the Hurricane 78 with missing 282 as of October 18, 2019. An additional 29472 person were affected by Hurricane by damages to their home and assets.

The $3.4 billion impact was divided as 72% in damage, 21% in losses and 7% in additional costs with the private sector absorbing almost 90% of total losses. Abaco suffered 87% of the losses and 76% cent of the damage.

Post-disaster the economy is expected to grow 0.9%. The impact of Hurricane Dorian is percentage point of GDP, resulting in a decrease in salaries of $51.3 million and of capital income of $60.9 million.

As a result, AccuWeather now estimates the total damage and economic loss caused by Hurricane Dorian will be $10 billion, according to AccuWeather Founder and CEO Dr. Joel N. Myers, based on an analysis incorporating independent methods to evaluate all direct and indirect impacts of the storm based on a variety of sources.

The industry which is much effected from the Hurricane are travel and tourism industry, including canceled vacations, canceled flights, lost revenue to hotels, cruise lines diverted, and expenses in preparation for the storm. Possible flooding and storm surge to coastal areas in the Southeast will also be a factor. Citrus crop and vegetable damages could also occur.