The Congressional Budget Office has estimated just how much the coronavirus is expected to cost the economy.
According to an estimation from the Congressional Budget Office, the impact of the coronavirus will be felt for the next 10 years on an economic scale, as the virus will likely sap about $7.9 trillion in economic activity. Through the fiscal year 2030, the Congressional Budget Office estimates that the coronavirus will reduce the real economic output (nominal GDP adjusted for inflation) by 3% from previous economic estimations in January before the virus became a pandemic.
CBO Director Phillip L. Swagel said, "Business closures and social distancing measures are expected to curtail consumer spending, while the recent drop in energy prices is projected to severely reduce U.S. investment in the energy sector. Recent legislation will, in CBO's assessment, partially mitigate the deterioration in economic conditions." The nominal GDP is expected to be 5.4% less than the original forecast pre-coronavirus, or more accurately $15.7 trillion.
Last updated: Jun 16, 2020 at 04:29 pm CDT
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