Fallout from the COVID-19 pandemic will shrink the size of the U.S. economy by $7.9 trillion over the next decade, according to new projections released by the Congressional Budget Office (CBO).
The U.S. economy will grow by $7.9 trillion less from 2020 to 2030 than the CBO had projected in January, which amounts to a 3 percent decline in U.S. GDP compared to its initial estimate.
“Business closures and social distancing measures are expected to curtail consumer spending, while the recent drop in energy prices is projected to severely reduce U.S. investment in the energy sector,” CBO Director Phillip L. Swagel said in a written response to an inquiry from Sen. Chuck Schumer (D–N.Y.). “Recent legislation will, in CBO’s assessment, partially mitigate the deterioration in economic conditions.”
The news follows the unemployment rate jumping from 3.5 percent in February to
