US, WASHINGTON (ORDO NEWS) — The economic impact of the coronavirus pandemic will be long-term, the US Congressional Budget Office (CBO) warned.
In a report issued in response to a request from Senate Democratic leader Chuck Schumer, the CBO said real-time GDP is expected to be about 3% less between 2020 and 2030 than it forecast in January. Adjusted for inflation, this drop will be equivalent to $ 7.9 trillion.
“The closure of enterprises and social distance measures are expected to cut consumer spending, while the recent fall in energy prices is projected to seriously cut US investment in the energy sector,” the department said.
The CBO also warned that its estimates may be incorrect, since the forecast depends on how the pandemic develops.
“In addition, if future federal measures differ from those that underlie CBO’s economic forecasts, for example, if lawmakers adopt additional legislation related to the pandemic, then the economic results will necessarily differ from those presented here,” the department noted.
According to the US Department of Commerce, in the I quarter of GDP declined by 5% in annual terms. The decline was recorded for the first time since the 1st quarter of 2014, and the current drop was the most significant since the 4th quarter of 2008.
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