Shutdown Costs U.S. Economy $14-B; 2% Cut in GDP Predicted

The ongoing federal shutdown has already cost the U.S. economy between $7 billion and $14 billion, according to a new report from the nonpartisan Congressional Budget Office (CBO), Ben Werschkul reported for Yahoo Finance.

The economy will suffer as a result of delayed federal spending for employee compensation, goods and services, and food stamp benefits for low-income Americans.

That could subtract up to 2% from gross domestic product (GDP) in the fourth quarter.

Reuters reported that the economy will suffer as a result of delayed federal spending for employee compensation, goods and services, and food stamp benefits for low-income Americans.

“Although most of the decline in real GDP will eventually be recovered, CBO estimates that between $7 billion and $14 billion will not be,” agency director Phillip Swagel said in an Oct. 29 letter to House Budget Committee Chairman Jodey Arrington, a Texas Republican who requested the analysis.