The partial suspension of the US government may hinder economic growth in the first quarter

The partial suspension of the US government /shutdown/ on Wednesday continued for the 26th day in a row. The White House and the Democratic Party, which gained a majority in the House of Representatives of the Congress, have still not been able to break the deadlock on the budget issue. Economists believe that the negative impact of the shutdown will gradually manifest itself in the US economy, and may hinder economic growth in the first quarter of this year.

As the American business news channel CNBC reported, citing a White House official, according to the latest forecast, a partial suspension of the government’s work will take 0.1 percentage points of the country’s economic growth every week.

The results of a survey conducted by the “Wall Street Journal” earlier this month among more than 70 economists show that the US economic growth rate in the first quarter of this year will slow to 2.2 percent. If the shutdown is longer, the economic growth forecast for the first quarter will continue to decline. According to the chief economist of “Moody” Mark Zandi, economic growth in the first quarter will decrease by 0.5 percent provided that the shutdown lasts until March.

Recall that due to serious disagreements between the White House and the Democrats in Congress on the financing of the construction of the wall on the border with Mexico, the parties failed to reach an agreement, in this regard about one quarter of the US Federal institutions since December 22 last year suspended its work. The current suspension of the American government has become the longest in the history of the country.