Economists: SoCal Will Survive With Little Long-Term Damage

03/28/2008 02:45 am ET | Updated May 25, 2011

Despite the destruction of more than 1,600 homes and buildings, massive evacuations and widespread business closures, Southern California's vast, diverse economy probably will withstand this latest disaster with little long-term damage, economists say.

In fact, some observers see a boon to areas such as construction, which is down 28,600 jobs through September, a 3% decline from the previous year, according to the state Employment Development Department.

"In the odd nature of economic accounting, this will probably be a stimulus," said Alan Gin, a University of San Diego economist. "There will be a huge amount of rebuilding in the next couple of years, financed by insurance payments."

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