Experts believe the recent fires in Los Angeles will have a minor effect on the national economy despite causing local disruptions
They think the damage will push inflation up a bit and slow down job growth, but nothing too drastic. It’s estimated that the economic hit could be around a quarter of a billion dollars, which is a lot, but it’s not enough to shake things up nationally.
Goldman Sachs chimed in, predicting a slight dip in growth for the first quarter, but they also mentioned that rebuilding could help balance things out. They expect job losses in January to be around 15,000 to 25,000, which isn’t huge considering the economy added over 250,000 jobs just last month.
Morgan Stanley agrees, saying job creation might take a hit too, but they don’t see a big spike in unemployment claims. They also noted that prices for used and new cars might go up a bit due to the fires, but other goods should remain stable.
Overall, while the fires are a big deal locally, they’re not expected to cause major national economic shifts. The U.S. economy is still looking strong as we head into 2025, even with some uncertainties on the horizon.
