In general, hurricanes cause little economic effects that too in the areas where the hurricanes strike directly. Considering this, hurricane Katrina was unlike from the prior incidents of hurricanes. According to the Bureau of Economic Crisis (BEA), the on the whole economic impact of hurricane Katrina was estimated to be about 150 billion dollars, which was the priciest natural disaster in the United States history.

The major factors that added to such an extensive economic impact were fallouts of oil supply, food export, tourism and other forms of trade and business.

The Gulf coast contributed to about 10 percent of the nation's oil supply, which was agitated due to hurricane Katrina. As a result, oil and gasoline prices were raised high. Luckily, no catastrophic damage was incurred in the oil infrastructure.

Hence, the condition was under control within the next 9 months. In addition to disruption in the national economy, a smash up to private and public properties also contributed to the overall economical effects of hurricane Katrina. The economy of the country was slow down considerably due to hurricane Katrina. .