The shutdown, which ended on Friday, reduced GDP in the fourth quarter of 2018 by $3 billion, in addition to $8 billion in the first quarter of 2019.
The five-week partial government shutdown cost the U. S. economy about $3 billion in forgone economic activity that won’t be recovered, the Congressional Budget Office said in a new report Monday.
The agency projected that an overall $11 billion in losses due to the shutdown over President Donald Trump’s border wall will be offset by a projected $8 billion boost for the GDP through the remainder of the year.
“Underlying those effects on the overall economy are much more significant effects on individual businesses and workers,” the agency says. “Among those who experienced the largest and most direct negative effects are federal workers who faced delayed compensation and private-sector entities that lost business.
