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                            <title>    Hurricane Harvey will have modest GDP effect, but that means little - BI
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class="globe-inner-circle" fill="#FFF" d="M10 1.1c-4.9 0-8.9 4-8.9 8.9s4 8.9 8.9 8.9 8.9-4 8.9-8.9-4-8.9-8.9-8.9zm0 16.7c-4.3 0-7.8-3.5-7.8-7.8S5.7 2.2 10 2.2s7.8 3.5 7.8 7.8-3.5 7.8-7.8 7.8z"/><path class="globe-outer-circle" fill="#848F91" d="M10 20C4.5 20 0 15.5 0 10S4.5 0 10 0s10 4.5 10 10-4.5 10-10 10zm0-1.1c4.9 0 8.9-4 8.9-8.9s-4-8.9-8.9-8.9-8.9 4-8.9 8.9 4 8.9 8.9 8.9z"/></svg>
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    <section class="accounts-list accounts-list-dropdown" data-accounts-list-dropdown>
        <div class="accounts-header accounts-list-dropdown">
            <span class="accounts-icon-wrapper">
                <svg class="svg-icon profile-icon accounts-list-dropdown" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 17 18.8"><path class="profile" fill="none" stroke="#848F91" d="M.5 14.8c.1-1.1 1-2.1 2.4-2.8.5.7 1.1 1.3 1.5 1.7.9.8 2.8 1.2 4 1.2s3.1-.4 4-1.2c.5-.5 1.2-1 1.7-1.6 1.4.7 2.2 1.7 2.3 2.7v3.4H.4l.1-3.4zm8-4c-3.6 0-4.6-4-4.6-6.2S5.9.5 8.5.5 13 2.3 13 4.6s-1 6.3-4.5 6.2z"/></svg>            </span>
            <div class="accounts-header-title">BI ACCOUNTS</div>
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    <ul class="accounts-listgroup">

        
                                                
    <li class="accounts-listitem">
            <a class="accounts-link" href="/login" target="" data-signin-default aria-label="signin">BUSINESS INSIDER</a>

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                            <li class="accounts-listitem signout-listitem">
                                            <a class="accounts-link" href="/subscription/prime" target="" data-signin-default aria-label="signin">BI PRIME</a>


                                            <a class="accounts-link-logout is-access-denied" href="#" target="" data-bi-prime-logout aria-label="signout">SIGN OUT</a>

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<nav class="l-nav l-nav-full" data-nav data-e2e-name="l-nav" data-track-page-area="Navigation">
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                        <li class="verticals-accordion-flex-grow verticals-accordion-listitem" data-vertical-label="tech">
                                                            <label class="verticals-accordion-label " data-e2e-name="vertical-listitem-link" data-vertical-listitem="Tech" for="item1">
                                    <a href="/sai" class="verticals-accordion-listitem-link" data-e2e-name="vertical-listitem-link" data-vertical-listitem="Tech">Tech</a>
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                                                                            <section class="verticals-accordion-subvertical-section">
                                                                                                        <a href="/enterprise" class="verticals-accordion-subvertical-link">
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                                    <a href="/clusterstock" class="verticals-accordion-listitem-link" data-e2e-name="vertical-listitem-link" data-vertical-listitem="Finance">Finance</a>
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                                                                            <section class="verticals-accordion-subvertical-section">
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                        <li class="verticals-accordion-flex-grow verticals-accordion-listitem" data-vertical-label="politics">
                                                            <label class="verticals-accordion-label " data-e2e-name="vertical-listitem-link" data-vertical-listitem="Politics" for="item3">
                                    <a href="/politics" class="verticals-accordion-listitem-link" data-e2e-name="vertical-listitem-link" data-vertical-listitem="Politics">Politics</a>
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                                                                            <section class="verticals-accordion-subvertical-section">
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            News
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                                                                            <svg class="svg-icon chevron-icon verticals-accordion-chevron-icon" data-chevron-icon xmlns="http://www.w3.org/2000/svg" viewBox="0 0 14.4 8.4"><path class="chevron" fill="none" stroke="#848F91" stroke-linecap="square" d="M.7.7l6.5 7 6.5-7"/></svg>                                                                    </label>
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                        <li class="verticals-accordion-flex-grow verticals-accordion-listitem" data-vertical-label="strategy">
                                                            <label class="verticals-accordion-label " data-e2e-name="vertical-listitem-link" data-vertical-listitem="Strategy" for="item4">
                                    <a href="/warroom" class="verticals-accordion-listitem-link" data-e2e-name="vertical-listitem-link" data-vertical-listitem="Strategy">Strategy</a>
                                    <input data-label-transform class="verticals-accordion-input" id="item4" type="checkbox" />
                                                                            <section class="verticals-accordion-subvertical-section">
                                                                                                        <a href="/careers" class="verticals-accordion-subvertical-link">
            Careers
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                                                                                    </section>
                                    
                                                                            <svg class="svg-icon chevron-icon verticals-accordion-chevron-icon" data-chevron-icon xmlns="http://www.w3.org/2000/svg" viewBox="0 0 14.4 8.4"><path class="chevron" fill="none" stroke="#848F91" stroke-linecap="square" d="M.7.7l6.5 7 6.5-7"/></svg>                                                                    </label>
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                        <li class="verticals-accordion-flex-grow verticals-accordion-listitem" data-vertical-label="life">
                                                            <label class="verticals-accordion-label " data-e2e-name="vertical-listitem-link" data-vertical-listitem="Life" for="item5">
                                    <a href="/thelife" class="verticals-accordion-listitem-link" data-e2e-name="vertical-listitem-link" data-vertical-listitem="Life">Life</a>
                                    <input data-label-transform class="verticals-accordion-input" id="item5" type="checkbox" />
                                                                            <section class="verticals-accordion-subvertical-section">
                                                                                                        <a href="/thewire" class="verticals-accordion-subvertical-link">
            Entertainment
        </a>
    
                                                                                                        <a href="/travel" class="verticals-accordion-subvertical-link">
            Travel
        </a>
    
                                                                                                        <a href="/sportspage" class="verticals-accordion-subvertical-link">
            Sports
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                                                                                    </section>
                                    
                                                                            <svg class="svg-icon chevron-icon verticals-accordion-chevron-icon" data-chevron-icon xmlns="http://www.w3.org/2000/svg" viewBox="0 0 14.4 8.4"><path class="chevron" fill="none" stroke="#848F91" stroke-linecap="square" d="M.7.7l6.5 7 6.5-7"/></svg>                                                                    </label>
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                        <li class="verticals-accordion-flex-grow verticals-accordion-listitem" data-vertical-label="all">
                                                            <label class="verticals-accordion-label verticals-accordion-label-last" data-e2e-name="vertical-listitem-link" data-vertical-listitem="All" for="item6">
                                    <a href="/all" class="verticals-accordion-listitem-link" data-e2e-name="vertical-listitem-link" data-vertical-listitem="All">All</a>
                                    <input data-label-transform class="verticals-accordion-input" id="item6" type="checkbox" />
                                    
                                                                    </label>
                                                    </li>

                            
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    <section class="accounts-list accounts-list-exposed" data-accounts-list-exposed>
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        <h1 class="post-headline" >There’s a reason economic measures are no good at capturing the likely damage from Hurricane Harvey</h1>
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                                            <div><p><figure id="img-49669" class="figure image-figure-image image-figure-float-right float-md-right postload" data-type="img" data-e2e-name="image-figure-image" data-media-container="image" style=""><postload-img data-src="https://amp.businessinsider.com/images/59a4837a79bbfd04418b56d9-750-562.jpg" data-sizes="(min-width: 960px) and (max-width: 1259px) 640px, (min-width: 1260px) 960px, (-webkit-min-device-pixel-ratio: 2) 50vw, 100vw" data-srcset="https://amp.businessinsider.com/images/59a4837a79bbfd04418b56d9-160-120.jpg 160w, https://amp.businessinsider.com/images/59a4837a79bbfd04418b56d9-320-240.jpg 320w, https://amp.businessinsider.com/images/59a4837a79bbfd04418b56d9-480-360.jpg 480w, https://amp.businessinsider.com/images/59a4837a79bbfd04418b56d9-640-480.jpg 640w, https://amp.businessinsider.com/images/59a4837a79bbfd04418b56d9-750-562.jpg 750w, https://amp.businessinsider.com/images/59a4837a79bbfd04418b56d9-960-720.jpg 960w, https://amp.businessinsider.com/images/59a4837a79bbfd04418b56d9-1136-852.jpg 1136w, https://amp.businessinsider.com/images/59a4837a79bbfd04418b56d9-1334-1000.jpg 1334w, https://amp.businessinsider.com/images/59a4837a79bbfd04418b56d9-1536-1152.jpg 1536w" data-alt="houston harvey hurricane flooding evacuation" ></postload-img><span class="image-source-caption"><figcaption class="image-caption" data-e2e-name="image-caption">Evacuees wade down a flooded section of Interstate 610 as floodwaters from Tropical Storm Harvey rise Sunday, Aug. 27, 2017, in Houston.</figcaption><span class="image-source" data-e2e-name="image-source"><a href="http://www.apimages.com/metadata/Index/APTOPIX-Harvey/bf54ea87cfd84201836e407f845649ee/1/1">AP Photo/David J. Phillip</a></span></span></figure>
There is always something callous about economic analysis of natural and humanitarian disasters, because the human and physical loss is so immediate that financial concerns appear superfluous. </p><p> But there's another key reason the already highly imprecise exercise of economic forecasting becomes especially useless with major disasters like <a href=http://www.businessinsider.com/tropical-storm-harvey-hurricane-updates-map-texas-where-landfall-damage-2017-8 > the deadly Hurricane Harvey</a>, which has already inundated Houston and is expected to cause untold damage. </p><p> Measures of economic activity like gross domestic product (GDP) were "not designed with natural disasters like Hurricane Harvey in mind," according to Steven Kyle, an economist at Cornell University, in an emailed statement. </p><p> That's because GDP will capture the reconstruction efforts that follow the storm but not subtract anything for the destruction, apart from any slowdown in economic activity immediately associated with the storm. </p><p> "A significant portion of the country's oil and oil-processing infrastructure will be out of action for a while," Kyle said. </p><p> "In addition, we have seen a huge destruction of capital assets &mdash; houses, roads, office buildings &mdash; and we will then see a burst of economic activity as these are rebuilt," he said. "That may make it look like we are getting a boost but I doubt if anyone in coastal Texas would tell you that they are better off. They lost a lot of stuff and are working to rebuild what they lost. Measures like the GDP pick up the effort to rebuild &mdash; but don't count the loss in assets." </p><p> With this in mind, Greg McBride, the chief financial analyst at Bankrate.com, said in an email that the storm will not have a major impact on national economic growth, which has been hovering around 2% in recent quarters. </p><p> "In the near term, bank on higher oil and gasoline prices until refining facilities and other petroleum infrastructure are back in operation," he said. "After that, oil prices will settle back into the familiar $45-$50 range we've seen in recent months." </p></div>
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