Daily Local News (West Chester, PA)

Economy likely to pick up, though pain may linger for some

- By Josh Boak AP Economics Writer

Some scars — for the nation and for federal workers — will take time to heal.

BALTIMORE >> The U.S. economy will likely resume its steady growth now that the government has reopened, though economists say some scars — for the nation and for federal workers — will take time to heal.

Most analysts estimate that the 35-day partial shutdown shaved a few tenths of a percentage point from annual economic growth in the first three month of 2019. They say growth should pick up in the coming months, though some of the money federal workers and contractor­s didn’t spend in the past five weeks — on such items as movie tickets, restaurant­s and travel — will never be made up. Having gone without two paychecks, many federal workers were forced to visit food banks or to borrow money. Federal workers will now receive backpay, though some contractor­s might not.

President Donald Trump agreed to reopen the government for three weeks after having forced the shutdown in hopes of compelling Democrats to approve billions for a wall on the Mexico border. Trump failed to secure any such money.

During the shutdown, a shortage of airport security and air traffic controller­s disrupted travel at such major hubs as LaGuardia Airport in New York and Newark Liberty Internatio­nal Airport in New Jersey. The pressure on Trump to reopen the government intensifie­d Friday after a delay of about 3,000 flights by mid-afternoon because six of 13 air traffic controller­s didn’t show up to work at a critical center in Virginia.

S&P Global Ratings estimates that the economy lost $6 billion because of the government closure — a sizable but relatively negligible sum in a $19 trillion-plus U.S. economy.

“If the shutdown had lasted much longer, the economic impacts would have snowballed — travel problems, tax refunds,

Newspapers in English

Newspapers from United States