- Congress and Trump’s deal to fund the government until February 15th came without any funding for Trump’s $5.7B proposed wall.
- The direct cost of the shutdown is estimated at more than $6B
- Indirectly, the shutdown could impact broader US economy by 4x the wall amount ($24B)
The cost of the government shutdown for over 1 month, in the form of lost productivity from furloughed workers and weakened economic activity, cost the U.S. economy at least $6 billion, according to a new analysis from S&P Global Ratings.
The Committee for a Responsible Federal Budget (CRFB) estimated the cost of the shutdown to be $26 billion to the greater economy or about 4x as much as Trump demanded for a border wall. This shutdown is expected to drag on Q1 GDP numbers in the US. Analysts expect as much as 0.5%.
These figures may impact the decision making on the next round of negotiations between Trump and Congress, which will determine funding after February 15th.
Article by: Francisco Cortez – Delgado
I graduated from Queen’s University with a Master’s of Political Studies. The intertwined world of politics and economics intrigue me. My favourite stories to cover are the ones that show how a few selected officials can impact nationwide macro-economic policies. I also follow the broader markets and FOREX.