US FEDERAL GOVERNMENT PARTIAL SHUTDOWN U.S SHUTDOWN | Page 2

ECONOMY: IS THE SHUTDOWN GOING TO END ANYTIME SOON?
It is unclear at this moment when the shutdown would end. Though Democrats say the ball is in the
Presidents court they are prepared to challenge the president if he does use his emergency power to
bypass congress. The Republican president, Donald Trump also said he was willing to drag this for a
long time if he had to. The short term economic impact will be the reduction in productivity due to
the fact that only a few emergency federal employees are at work. In 2013, the Bureau of Economic
Analysis estimated that real gross domestic product growth was lower by 0.3 of a percentage point.
Payrolls data will be affected as federal employees that are home and not getting paid would be
classified as unemployed by the Bureau of Labor Statistics in their January jobs data. The overall toll
that was exacted by the October 2013 shutdown was fair as the economy grew in the fourth quarter
of that year by an annualized 3.2 percent.