US could lose between $7bn and $14bn during shutdown, budget office says

Federal agency also estimates country’s GDP will reduce by one to two percentage points over shrinking demand

The US is set to lose between $7bn and $14bn as a result of the ongoing federal government shutdown, according to the congressional budget office.

On Wednesday, the nonpartisan federal agency released its estimates in a new report to the House budget committee as the government shutdown reaches four weeks.

According to the report, the shutdown will also reduce the US’s GDP by one to two percentage points in the fourth quarter of 2025.

In his report, Phillip Swagel, the CBO director, said: “In CBO’s assessment, the shutdown will delay federal spending and have a negative effect on the economy that will mostly, but not entirely, reverse once the shutdown ends.”