Prolonged US govt shutdown could hurt Q4 growth
WASHINGTON (REUTERS) - US economic growth could suffer a big hit in the fourth quarter if the partial shutdown of the US government lasts more than a month, analysts are warning.
Economists estimate that the shutdown, which started on October 1, was chipping away roughly 0.1 percentage point each week from fourth-quarter gross domestic product.
"But if the shutdown lasts through the end of October, the economic damage would be significant, reducing real GDP as much as 1.5 percentage points in the fourth quarter," said Mr Mark Zandi, chief economist at Moody's Analytics in West Chester, Pennsylvania.
"An interruption longer than one month would likely cause growth to stall in the quarter, and one longer than two months could precipitate another recession," he said.