Attacks to cost N.Y. $83 million, report finds

125,000 jobs expected to be lost this year

War On Terrorism : The Nation

November 16, 2001|By NEWSDAY

NEW YORK - The World Trade Center attacks will cost New York City's economy $83 billion by the end of 2003. After insurance payments and federal aid are factored in, a shortfall of at least $16 billion will remain, an economic analysis released yesterday shows.

The industries hardest hit are financial services, tourism, retailing and small business, according to the study by seven major consulting firms for the New York City Partnership, a business group.

It said 125,000 jobs will disappear this year as a result of the attacks, not because of a recession, and 57,000 won't have come back two years from now.

"The impact of this attack is really much more significant than any of us thought" and is greater than the city and state's annual budget, said Jerry Speyer, chief executive of a major real estate firm and a member of the partnership's board. "But the experts also believe the impact is manageable."

The study does not provide a blueprint for redevelopment. That's up to the mayor, governor and a new public authority, he said. Still, partnership executives enumerated key steps to contain the damage and accelerate a recovery:

Make people feel safe;

Develop a vision for lower Manhattan before the cleanup is finished;

Quickly restore telecommunications and transportation;

Retain the city's position as the world financial center;

Promote New York for tourists and business.

The partnership study is the latest of several reports analyzing the economic impact of Sept. 11. A study by city Comptroller Alan Hevesi estimated the city economy would suffer $90 billion to $105 billion in damages by mid-2003.

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