U.S. Congressional Budget Office: "Federal government shutdown could cause up to $14 billion in economic losses"

An analysis has found that if the U.S. federal government shutdown persists, it could cause up to $14 billion in economic losses. This could reduce this year's fourth-quarter gross domestic product (GDP) by up to 2%.

On the 29th (local time), according to economic news channel Walter Bloomberg, the U.S. Congressional Budget Office (CBO) said in a report, "If the gap in government spending continues, the U.S. economy is expected to incur losses of $7 billion to $14 billion," and "this means that gaps in federal government spending can directly hit the real economy."

The CBO explained that this estimate includes not only short-term administrative shutdowns but also indirect effects such as delayed federal contracts, unpaid wages, and reduced consumption.

Economists pointed out that if the shutdown lasts more than a month, private sector employment and domestic demand could both weaken.

Meanwhile, the current shutdown was triggered by delays in passing the budget, and Republicans and Democrats have still not reached agreement on spending priorities.