Goldman Sachs warned that the ongoing U.S. government shutdown is set to inflict the largest economic hit of any shutdown on record, both in scale and duration. <\/p>\n
The bank said the current halt in federal operations appears broader than the 35-day partial shutdown of 2018\u201319, impacting far more agencies and government functions. While a short disruption of two to three weeks would mostly reflect lost output from furloughed workers, Goldman said a longer shutdown could significantly weigh on federal spending, investment, and even private sector activity.<\/p>\n
Assuming the shutdown extends for about six weeks, Goldman estimates<\/p>\n
it will reduce U.S. GDP growth in the fourth quarter of 2025 by 1.15 percentage points (q\/q annualized), followed by a rebound of roughly 1.3 points in the first quarter of 2026 as delayed federal purchases and investment are realized. <\/p>\n
The bank concluded that while activity may recover in early 2026, the near-term drag could mark the sharpest quarter-on-quarter disruption caused by any U.S. government shutdown. <\/p>\n
—<\/p>\n
Goldman\u2019s projection underscores the rising economic risk from a prolonged U.S. government shutdown, with markets likely to price in near-term growth weakness before any first-quarter recovery.<\/p>\n
—<\/p>\n
Trump touts himself as a dealmaker but has so far been unable, more likely unwilling though, to do anything to end the the shut down. <\/p>\n","protected":false},"excerpt":{"rendered":"Goldman Sachs warned that the ongoing U.S. government shutdown is set to inflict the largest economic hit of…\n","protected":false},"author":2,"featured_media":240753,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,101491,56,54,55],"class_list":{"0":"post-240752","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-goldman-warns-record-hit","11":"tag-uk","12":"tag-united-kingdom","13":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/240752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=240752"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/240752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/240753"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=240752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=240752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=240752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}