CBO: Shutdown cost economy $3 billion
Source: The Hill
BY NIV ELIS - 01/28/19 10:00 AM EST
The five-week partial shutdown that ended Friday cost the U.S. economy $3 billion, according to a new report by the nonpartisan Congressional Budget Office.
The economy lost $11 billion during the course of the shutdown, which began Dec. 22, but some $8 billion of that will be recovered as the government reopens and workers receive back pay.
“Although most of the real GDP lost during the fourth quarter of 2018 and the first quarter of 2019 will eventually be recovered, CBO estimates that about $3 billion will not be,” CBO director Keith Hall said Monday in a prepared statement.
All in all, that amounts to a 0.2 percentage point drop in economic growth in the fourth quarter of 2018, followed by a 0.4 percentage point decline in growth during the first quarter of 2019.
Read more: https://thehill.com/policy/finance/427230-cbo-shutdown-will-cost-economy-3-billion
CBO primarily looked at the economic cost of leaving 800,000 federal workers unpaid, reduced government spending on goods and services and lower demand resulting from the shutdown. The report did not take incorporate possible effects on the business sector from the inability to access certain loans, permits and certifications during the downturn.
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