S&P: Shutdown takes $24 billion out of US economy

The shutdown has shaved at least 0.6 percent off of annualized fourth-quarter 2013 GDP growth, says the rating agency.

S&P: Shutdown takes $24 billion out of US economy
World Bulletin / News Desk

Standard & Poor's, the credit rating agency, said the government shutdown has taken $24 billion out of the US economy.

After sixteen days of a government shutdown, and with just a day before the US risked defaulting on its debt, the US Congress voted Wednesday night to end Washington’s gridlock.

The shutdown has shaved at least 0.6 percent off of annualized fourth-quarter 2013 GDP growth, S&P said in a statement on Wednesday.

Should a default occur, the resulting sudden, unplanned contraction of current spending could see government spending cut by about 4 percent of annualized GDP, the statement said.

"That would put the economy in a recession and wipeout much of the economic progress made by the recovery from the Great Recession," it added. "The bottom line is the government shutdown has hurt the US economy.

Last Mod: 17 Ekim 2013, 13:52
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