Storm Sandy to cost New York state economy up to $18 bln

Temporary losses to New York state's economy from super storm Sandy could reach $18 billion, State Comptroller Thomas DiNapoli said today.

Disruptions to daily business -- from Wall Street in New York City to Main Street shops on Long Island and upstate -- could cause between $15 billion and $18 billion in lost economic activity, according to DiNapoli's preliminary estimates.

Not all the damage to the state's economy is expected to be permanent, however, as rebuilding efforts should provide a boost with the sale of materials and increased employment, a DiNapoli spokeswoman said

Sandy made landfall in neighbouring New Jersey on Monday as it barreled across the Eastern part of the continent. It crippled power and transportation systems on the East Coast, and killed at least 102 people in the United States and Canada and at least 69 people in the Caribbean.

Before the storm, New York state's tax revenue collections were already $436 million shy of initial projections. Tax revenues could be further dampened because of Sandy, said DiNapoli, who will issue his upcoming fiscal year outlook next week.

New York City Comptroller John Liu said on Wednesday that Sandy is costing the Big Apple up to $200 million a day in permanent economic losses, though the number should top out at about $1 billion.