The US government shutdown shaved 0.6 percent off the GDP.
The US government shutdown, which last for 16 days, cost the nation™s economy at least $24 billion, economists said Wednesday, hours before Congress agreed on a budget deal.
According to analysis from Standard & Poor™s, the shutdown that began on October 1 shaved 0.6 percent off the US growth.
The shutdown officially ended on Thursday after President Barack Obama signed a bill that passed both houses in Congress late Wednesday night after weeks of negotiations between Democrats and Republicans. The compromise however, only funds the government through January 15.
S&P said that means the same economic woes that this most recent fight inflicted will be a threat again in relatively short order.
The firm warned that American consumers could have a hard time regaining their momentum during that relatively short window.
“The short turnaround for politicians to negotiate some sort of lasting deal will likely weigh on consumer confidence, especially among government workers that were furloughed,” S&P said.
“If people are afraid that the government policy brinkmanship will resurface again, and with it the risk of another shutdown or worse, they’ll remain afraid to open up their checkbooks. That points to another Humbug holiday season,” it added.
The bill President Obama signed into law would also allow the Treasury to keep borrowing funds until February 7.
Critics say although the government opened and there is no threat of default at present time, the ongoing dispute between Republicans and Democrats over how to handle the nation™s fiscal problems would remain as a threat to vulnerable people in the country.
ARA/ARA
Copyright: Press TV