Coronavirus Pandemic to Reduce US GDP By Almost $16Trln Over Next Decade, Budget Office Says

WASHINGTON (Sputnik) – US Gross Domestic Product (GDP) output will fall by almost $16 trillion, or more than 5 percent less than what was projected at the beginning of this year because of the economic impact of the novel coronavirus (COVID-19) pandemic, the Congressional Budget Office (CBO) said in a projection.

“CBO projects that over the 2020-2030 period, cumulative nominal output will be $15.7 trillion less than what the agency projected in January,” the CBO said in a projection issued on Monday. “That difference constitutes 5.3 percent of the value for cumulative nominal GDP for that period that the agency projected in January.”

In its report covering May 2020, CBO projected that the level of nominal GDP in the second quarter of 2020 would be $790 billion, or 14.2 percent lower than the agency had previously forecast in January.

Business closures and social distancing measures are expected to curtail consumer spending, while the recent drop in energy prices is projected to severely reduce US investment in the energy sector, the projection added.

Sourse: sputniknews.com