Hurricane Katrina

Americans outside Louisiana and Mississippi who thought the devastating impact of Hurricane Katrina had failed to affect their lives are in for a series of nasty shocks.

The aftermath of the disaster that flooded most of New Orleans and left hundreds, perhaps thousands dead is now expected to hit important sectors of the US economy.

Experts believe the impact will be short-lived and will not tip the country into recession. Growth of 3.5% to 4% is still expected this year.

But while the effects last, consumers face further big hikes in gasoline prices, shortages in the supermarkets and the prospect of bankruptcies in the airline industry.