Preliminary Reports Estimate Alberta Floods Damage up to $1.5 Billion

According to the estimates of newly released preliminary reports on the flooding in southern Alberta, it has been speculated that it was the worst flood in the province’s history, which might engulf almost $500 million to $1.5 billion from the Canadian economy in June. In a research note released on Wednesday, TD Economists, Jonathan Bendiner, Derek Burleton, and Sonya Gulati, stated that “while the purpose of this commentary is to provide a preliminary economic and fiscal impact assessment of the recent severe flooding in Calgary and other parts of Alberta, we acknowledge that much of the costs — notably loss of life and human suffering — cannot be priced.” The estimates of TD are mostly in order with the separately released estimates of CIBC World Markets Inc. on Wednesday.

In the research notes of CIBC World Markets Inc, economists, Warren Lovely and Emanuella Enenajor, mentioned that “while damage assessments are still being conducted and the region continues to struggle in the aftermath of the disaster, the economic and fiscal ramifications of the incident are likely significant.” It was added that “while Calgary took a substantial hit from the floods, farmlands in Southern Alberta were also affected, and heavy rains also may have contributed to pipeline ruptures and temporary shutdowns.”

The research note of CIBC further highlighted that “in the short-term, this loss of economic activity will add to the fiscal fallout from the disaster. Rebuilding efforts in the quarters ahead could support activity, although the process will likely be drawn-out given the extent of the damage to homes, businesses, roads, and other infrastructure.”

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