Congress has three weeks to reach an agreement, and the US president is not optimistic …
The shutdown was expensive. The partial closure of federal government services for more than a month has cost the US economy $ 11 billion, of which some $ 3 billion will not be recoverable, according to Congressional Budget Services (CBO). ).
“As a result of the decline in economic activity, the CBO estimates that fourth quarter gross domestic product (GDP) has been cut by $ 3 billion. In the first quarter of 2019, the level of GDP is lower by 8 billion dollars (…) reflecting both the five weeks of partial shutdown and the recovery of economic activity, “they said Monday in a statement. Three billion dollars represents about 0.02% of the 2019 GDP estimate, says the CBO.
- Three weeks to find an agreement
“Beyond the underlying effects on the economy in general, the effects on workers and sole proprietorships should be even greater,” notes the CBO. “Some private sector companies will never recover lost revenue.” “Although the bulk of the GDP lost during the fourth quarter of 2019 and the first quarter of 2019 will be recovered in fine, the CBO estimates that about three billion will not be recovered,” he said.
After more than a month of paralysis affecting 800,000 civil servants, US President Donald Trump announced Friday an agreement to end the shutdown, providing funding for federal services until February 15. However, he threatened further fiscal paralysis from this date if no consensus was found.