Jeff Masters. 16 Nov 2012. Lessons from 2012: Droughts, not Hurricanes, are the Greater Danger. wunderground.com

The colossal devastation and loss of life wrought by Hurricane Sandy makes the storm one of the greatest disasters in U.S. history. The storm and its aftermath have rightfully dominated the weather headlines this year, and Sandy will undoubtedly be remembered as the most notable global weather event of 2012. But shockingly, Sandy is probably not even the deadliest or most expensive weather disaster this year in the United States–Sandy’s damages of perhaps $50 billion will likely be overshadowed by the huge costs of the great drought of 2012. While it will be several months before the costs of America’s worst drought since 1954 are known, the 2012 drought is expected to cut America’s GDP by 0.5 – 1 percentage points, said Deutsche Bank Securities this week. “If the U.S. were growing at 4 percent, it wouldn’t be as big an issue, but at 2 percent, it’s noticed,” said Joseph LaVorgna, the chief U.S. economist at Deutsche. Since the U.S. GDP is approximately $15 trillion, the drought of 2012 represents a $75 – $150 billion hit to the U.S. economy. This is in the same range as the estimate of $77 billion in costs for the drought, made by Purdue University economist Chris Hurt in August. While Sandy’s death toll of 113 in the U.S. is the second highest death toll from a U.S. hurricane since 1972, it is likely to be exceeded by the death toll from the heat waves that accompanied this year’s drought. The heat waves associated with the U.S. droughts of 1980 and 1988 had death tolls of 10,000 and 7,500 respectively, according to NOAA’s National Climatic Data Center, and the heat wave associated with the $12 billion 2011 Texas drought killed 95 Americans. With July 2012 the hottest month in U.S. history, I expect the final heat death toll in the U.S. this year will be much higher than Sandy’s death toll.