Government shutdown cost economy nearly $6billion, 300 million more than what Trump wanted for his border wall
Standard & Poor, a financial rating agency, released a report on Friday, analyzing how the US economy was impacted because of the shutdown, said to be the longest in US history
The partial government shutdown, which lasted for 35 days and ended on Friday, reportedly cost the country's economy at least $6billion, slightly more than the $5.7billion sum President Donald Trump had demanded for his border wall and the reason he shut down the government.
Standard & Poor, a financial rating agency, released a report on Friday, analyzing how the US economy was impacted because of the shutdown, which was recorded as the longest government shutdown in the history of the United States. It rendered over 800,000 federal workers furloughed without their paychecks as they struggled to make ends meet.
The S&P, in its report, stated that the overall cost to the US economy, which is worth nearly $19trillion, would be "likely worse than what he had previously expected," according to ABC News. An estimate released earlier by the rating agency had stated that the shutdown would only have a "modest impact" on the economy, costing about $1.2 billion of its GDP each week the shutdown lasted.
However, the S&P, in Friday's report, stated that the updated damage to the US economy was because "weekly costs likely widened beyond the average weekly cost of $1.2 billion."
"Here, both direct costs, on lost productivity from furloughed government workers, and indirect costs, from lost economic activity to outside businesses because of the shutdown, amplified with each week the government remained closed," the S&P said in a statement to the news outlet.
President Trump signed a bill on Friday, reopening the government until February 15, which means that the furloughed workers would be able to get their paychecks as the Republican continued to demand money for his border wall.
The shutdown was imposed last month on December 22 after Democrats refused to allow $5 billion to be put in the Congressional budget for Trump's controversial wall along the southern US-Mexico Mexico border. The Democrats, who do not appear to budge on negotiations regarding the funding, have described the wall as "costly and immoral."
The S&P, in its report, also stated that if there is another shutdown, the economic growth of the country could be stymied.
Trump, in a tweet on Friday, suggested that there would be consequences if no agreement is reached over his proposed border wall during the 21 day period.
"If no deal is done, it’s off to the races!" Trump tweeted.
The S&P said: "Although this funding battle has ended, the next one starts in a few weeks, which may reduce growth expectations if businesses and financial markets begin to expect that Congress and the president will repeat the experience again and again."