Less than perfect weather reduces America’s GDP In perfect weather conditions, America’s GDP would increase by 3.4%, according to a study by the National centre for Atmospheric Research.The NACR study estimated that routine weather events like rain, snowstorms or even cooler-than-average days cost the US $485 billion per year. The team of scientists and economists drew on 70 years of data to regress temperature and precipitation levels against economic indicators.
These numbers do not take into account extreme weather events like hurricanes and tornadoes, which add additional costs.
Mining and agriculture are the most affected by weather, which costs up to 8% of gross product yearly. Finance, insurance and retail also suffer substantial losses.
Sensitivity also varies by state. New York was the most affected at 13.5% of gross product.
The study is meant to demonstrate the value of investing in more accurate forecasting strategies.
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