Flood Rebuilding Efforts Expected to Create Temporary Stimulus in SC
Thursday, December 17, the USC Darla Moore School of Business held their annual Economic Outlook Conference. Joseph Von Nessen Ph.D. presented the 2016 South Carolina Economic Outlook. While the Thousand-Year flood caused major damage in SC, the recovery efforts are expected to cause a temporary stimulus in 2016.
During the historic flood this October, the state incurred an estimated 1.5 Billion dollars in damage. Von Nessen says the rebuilding effort is going to create a temporary stimulus for South Carolina’s economy in 2016. South Carolina Public Radio’s Laura Hunsberger has the story.
- Dr. Joseph Von Nessen says the rebuilding effort is going to create a temporary stimulus for South Carolina’s economy in 2016.
- Money that comes in through FEMA, SBA loans, and insurance claims will be spent, creating jobs and income on a temporary basis.
- In 2015, South Carolina created around 4700 new jobs per month, but because of the flood and the rebuilding efforts, the state could see even more employment growth in the coming year.
- Von Nessen says a stimulus could increase projections by up to about half of a percentage point in terms of overall employment growth for 2016. With a baseline projection of 2.9 percent growth, that in gets the state to nearly 3.5 percent employment growth in the coming year.
- The effects of the stimulus will be felt primarily in rural counties in and around the Midlands and the Charleston area.
- According to Von Nessen, the impact of the stimulus could depend on how long the rebuilding effort takes, which could be 12 to 18 months.
- However, there will be a net loss in total wealth in the state because of the flood.
Mike Switzer, host of The South Carolina Business Review, interviewed Dr. Joseph Von Nessen shortly after the floods. The research economist with USC's Moore School of business says the school's Division of Research as been busy tracking and calculating our state's economic statistics.