The U.S. government shutdown has entered its 31st day, becoming the second-longest in the nation’s history and raising alarms about its deepening economic consequences. A new Congressional Budget Office (CBO) report warns of a permanent $14 billion loss to U.S. GDP if the political impasse continues for another month, underscoring risks to global markets and investor confidence.
The nonpartisan analysis highlights reduced consumer spending, delayed business investments, and disruptions to federal services as key drivers of the economic strain. Over 800,000 federal workers and contractors face unpaid wages, while sectors from aviation to tourism report operational challenges. Economists caution that prolonged uncertainty could weaken the U.S.’s position as a stable investment hub, with ripple effects across Asian export-driven economies.
While short-term relief may follow a resolution, the CBO notes that nearly $3 billion in economic activity is already irrecoverable. The shutdown’s timing – coinciding with trade negotiations and global growth slowdown fears – amplifies concerns for businesses and policymakers monitoring cross-border supply chains.
