The longest US government shutdown in history concluded this week after 43 days, but its economic aftershocks continue to reverberate globally. As federal agencies resumed operations on November 12, new data reveals permanent damage that could influence Asian markets and trade partnerships through 2026.
According to a Congressional Budget Office assessment released in late October, the six-week closure reduced annualized US fourth-quarter GDP growth by 1.5 percentage points. Of particular concern to Asian exporters and investors: $7 billion to $15 billion in lost output is deemed permanently unrecoverable due to disrupted contracts and supply chain delays.
Analysts warn the shutdown's timing exacerbates existing challenges for Asia-US economic ties. "The fourth-quarter slump coincides with peak manufacturing cycles across East Asia," noted Singapore-based economist Dr. Li Wei. "Many regional suppliers face delayed payments and canceled orders that may impact 2026 production forecasts."
While immediate relief measures are underway, the CBO projects cumulative losses reaching $11 billion by 2026 through reduced productivity. Tourism-dependent economies in Southeast Asia also report decreased US visitor bookings during the critical holiday planning period.
