Goldman Sachs Says Abnormally Cold Winter Cut .7% of GDP

The economists at Goldman Sachs are saying that the abnormally cold weather this year, even after accounting for normal season coldness, has cost the United States .7% of GDP over the last quarter and a half. In the final quarter of ’13, cold and snowy conditions slowed the economy down to the tune of .2%, and .5% so far in the first quarter of this year.

Goldman expects the economy to add 130,000 jobs in February, which would be a disappointing figure, following the paltry 113,300 jobs added in January. The number would be closer to 190,000 jobs without the extreme weather, according to the report.

Goldman adds the helpful note that weather changes, of course, even out, and expects to see the economy pick up the slack and make up most of that lost growth during the spring and summer.

In a completely unrelated note, scientists are warning us to expect more and more extreme weather events as the atmosphere grows warmer and can hold more water vapor.


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