OMB: Shutdown Cost GDP $2-$6 Billion In 4th Quarter Output

AP

The government shutdown in October resulted in a loss of somewhere between $2 and $6 billion from the country’s GDP in the fourth quarter, lowering the GDP by 0.2-0.6 percentage points, according to estimates in a report released Thursday by the White House Office of Management and Budget.

The shutdown impeded trade by keeping the government form issuing new licenses for imports and exports. OMB reported that two million liters of American products were stalled at ports.

The government closure also kept agencies from approving loans. The Small Business Administration could not process 700 loan applications totalling $140 million.

The shuttering of national parks also cost the tourism industry about $500 million in visitor spending.

Correction: This post orginally stated that the shutdown cost the GDP $2-$6 million.

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