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Federal shutdown could cost US economy up to $14 billion
US government shutdown could shave up to US$14 billion off Q4 GDP, with some output loss likely permanent.
The ongoing U.S. federal government shutdown may reduce fourth-quarter GDP by between US$7 billion and US$14 billion (up to 2%) due to delayed federal spending, including pay, goods and services, and welfare benefits, the Congressional Budget Office said. About 750,000 federal workers have been furloughed since October 1, 2025. The agency cautioned that while much of the decline may be recovered, a portion of the loss may be permanent, depending on how long the shutdown lasts.