US government shutdown cost America’s economy US$11 billion
- Shutdown hurt economic growth because it affected roughly 800,000 workers and delayed federal spending on goods and services
- Much of the money will be recouped now the government is open again but the Congressional Budget Office calculates US$3 billion will never be recovered
The five-week government shutdown subtracted US$11 billion from the US economy, about twice the amount President Donald Trump sought to fund a border wall, an independent congressional body said.
However, all but US$3 billion, or 0.02 per cent of GDP, will eventually be recovered as the government resumes operations, the non-partisan Congressional Budget Office said in a report.
The estimate suggested the damages from the political brawl in Washington were significant but stopped short of the far worse harm that could have occurred had it been allowed to continue.
“Underlying those effects on the overall economy are much more significant effects on individual businesses and workers,” the report said.
“Some of those private-sector entities will never recoup that lost income.”