The negative impact on GDP will double for every week the impasse continues, Bank of America economists warn
The longer the partial government shutdown drags on the more it will drag down U. S. economic growth, Bank of America economists warned in a note today that lowered their first-quarter GDP growth estimate to 2.0 percent from their previous 2.2 percent.
“It is important to remember that this is a moving target — we will continue to slice the forecast for 1Q the longer the government is shut,” economists led by Michelle Meyer wrote. “Indeed, our calculations show that the negative impact will magnify the longer the shutdown runs.”
Indeed, for every week the shutdown continues, the drag on growth in GDP doubles, the economists wrote.
