Summary
The ongoing federal government shutdown in the U.S. has been the longest in history, affecting the economy by delaying paychecks for 1.25 million federal workers and causing thousands of flight cancellations. Although many economic activities will recover after the government reopens, around $11 billion is expected to be permanently lost.
Key Facts
- The U.S. is experiencing its longest federal government shutdown, which began on October 1.
- About 1.25 million federal workers have not received paychecks during the shutdown.
- Thousands of flights have been canceled, with more expected even as the government approaches reopening.
- There has been a slowdown in government contract awards and interruptions in food aid benefits for some recipients.
- The shutdown is projected to reduce economic growth for the fourth quarter by 1.5 percentage points.
- The reopening of the government could increase growth in the first quarter of the following year by 2.2 percentage points.
- The Congressional Budget Office estimates that $11 billion in economic activity will not be recovered.
- The impact of this shutdown is more significant than a past shutdown in 2018-2019, which lasted for 35 days.
