U.S. Congress estimates shutdown economic impact

 U.S. Congress estimates shutdown economic impact

The federal government shutdown cost the U.S. economy $11 billion, according to a new analysis from the Congressional Budget Office, reflecting lost output from federal workers, delayed government spending and reduced demand.

The report estimated a hit of $3 billion, or 0.1%, to economic activity during the fourth quarter of 2018. The impact was projected to be greater during the first quarter of 2019: $8 billion, or 0.2% of GDP.

Although most of the damage to the economy will be reversed as federal workers return to their jobs, the CBO estimated $3 billion in economic activity is permanently lost after a quarter of the government was closed for nearly 35 days.

"Among those who experienced the largest and most direct negative effects are federal workers who faced delayed compensation and private-sector entities that lost business. Some of those private-sector entities will never recoup that lost income," CNBC cited the reported as saying.