Two days ago, on November 12, 2025, the US government reopened after the longest shutdown in its history—43 days of halted operations that left an indelible mark on the economy.
The Immediate Hit
In late October, the US Congressional Budget Office (CBO) released an assessment showing that this six-week closure shaved 1.5 percentage points off the annualized fourth-quarter GDP growth rate. That drop reflects paused paychecks, frozen contracts, and services thrown into disarray.
Long-Term Implications
Looking ahead, the CBO warns of a sustained drag on output. By the end of 2026, reduced hours for furloughed federal employees are projected to cost the economy $11 billion in real GDP. Even more starkly, $7 billion to $15 billion of lost output during the shutdown will be permanently unrecoverable—a lasting legacy of stalled government services, delayed federal contracts, and widespread sector disruptions.
As federal agencies scramble to clear backlogs and restart programs, experts say some economic scars may never fully heal.
Reference(s):
cgtn.com
