Government shutdown projected to cost American economy $3 billion

Government shutdown projected to cost American economy $3 billion

U.S. Economy Permanently Lost $3B From Shutdown, CBO Finds

The report comes as the government is reopening after a 35-day partial shutdown. "Although their precise effects on economic output are uncertain, the negative effects of such factors would have become increasingly important if the partial shutdown had extended beyond five weeks".

The shutdown, the longest in U.S. history, was triggered by disagreement over President Donald Trump's demand that Congress include $5.7bn to build a wall along the Mexican border in a new funding bill.

A federal worker stands with a placard reading "Will Work For Pay" as other federal employees stage a rally to call for a vote on the shutdown on Capitol Hill in Washington, Jan. 23, 2019.

A new government report projects that the budget deficit for 2019 will be close to $900 billion (4.2 percent of gross domestic product (GDP)) and predicts that economic growth will slow as the effects of President Trump's tax cut on business investment begin to drop off.

US federal government worker Yvette Hicks, whose status as a contractor means she will receive no back pay from the 35-day shutdown, cries in frustration as she talks about her situation at her home in Washington on Friday. "Some of those private-sector entities will never recoup that lost income", the CBO stated.

Some shutdown costs, however, are harder to quantify, the office said.

The partial shutdown of the USA government is estimated to have cost the U.S. economy $3bn (£2.3bn).

Strong winds in Mid Wales triggers yellow weather warning
Last year, Hampshire was blanketed by snow after a combination of cold weather patterns combined over the county. Before this, Monday is forecast to be another cold day, with snow falling over northern Scotland.

The government fully reopened again on Monday, though the president has pledged to the shut it down again or declare a national emergency to secure funds for the wall if Democrats don't cave to his demands by February 15.

Trump was widely seen as having lost the standoff with congressional Democrats as polling showed most voters blamed the president for the impasse while hard-right commentators accused him of capitulation.

Trump said he would be willing to shut down the government again if lawmakers do not reach a deal he finds acceptable on border security.

Furloughed workers wait in line to receive food and supplies in Washington, on January 22.

The shutdown "dampened economic activity", according to the CBO, primarily due to the "loss of furloughed federal workers' contribution to GDP, the delay in federal spending on goods and services, and the reduction in aggregate demand".

"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 in a Monday statement.

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