But damage doesn’t reduce GDP, the loss of output does. The property that was damaged was actually produced a long time ago, so it doesn’t reduce the GDP. As people repair and replace damaged property, it will eventually boost GDP, but that’s more likely to happen in 2013.
And whether it happens sooner or later, we'll be spending our valuable resources to "get back to even" instead of advancing our prospects. Ultimately, destruction caused by natural disasters (hurricanes) or manufactured disasters (wars) is never good for the economy.
