The economic impact from the just-concluded government shutdown was apparently quite substantial.
Yesterday I noted that Standard & Poors had estimated that the recently-concluded government shutdown had cost the economy some $6 billion. This morning, the Congressional Budget Office estimated that the costs were much higher and that a good part of that loss will never be recovered:
WASHINGTON — The five-week federal government shutdown cost the United States economy $11 billion, with nearly a quarter of that total permanently lost, the Congressional Budget Office said on Monday.
The nonpartisan C. B. O. said that the shutdown, which started in late December and ended last Friday, delayed $18 billion in spending by federal workers. That is expected to reduce 2018 fourth quarter gross domestic product by $3 billion and cut first quarter growth this year by $8 billion, or 0.2 percent.
The C. B. O. said that growth in subsequent quarters will be higher as that delayed spending takes place and filters through the economy.
