FX.co ★ US economy to pay hefty snow bills

Recently, East Coast cities in the United States were hit hard by a massive snowstorm. While residents of the snow-covered region are getting back to their normal routines after the blizzard, experts are estimating the economic cost of the disaster. The storm was given a few nicknames, such as Jonas and Snowzilla. An analysis by Moody’s estimates the US economy incurred losses of almost $3 billion. Lost sales revenues account for the bulk of the economic damage. Stores, restaurants, and hotels were closed for several days due to a lack of customers. Besides, lots of employees lost wages. On the whole, the blizzard paralyzed airports, highways, businesses, schools, and government agencies along the East Coast for an entire weekend and much of the business week that caused significant financial damage.

The red alert was declared in Georgia, Pennsylvania, Tennessee, Maryland, Virginia, and North Carolina. The storm left the aftermath in New York, Boston, Philadelphia, and the state of Kentucky. Despite the heavy damage, Snowzilla is not the worst weather disaster in the US history. For example, hurricane Sandy that swept the East Coast in October 2012 caused $62 billion in total damage. However, hurricane Katrina, which struck the Gulf Coast in late August 2005, has been acknowledged the nation’s most destructive storm. The total damage from Katrina is estimated at a whopping $129 billion.