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2025-11-03 14:58:37
Goldman Sachs: Current US Government Shutdown Expected to Set Record for Largest Economic Impact. A new report from Goldman Sachs analysts indicates that the current US government shutdown is expected to set a record for the largest economic impact in history. The report analyzes that this shutdown not only potentially exceeds the duration of the 35-day partial shutdown of 2018-2019, but its scope also far exceeds previous long-term shutdowns involving only a few institutions. Analysts warn that if the shutdown continues for a longer period, it will significantly impact federal procurement and investment activities and could further affect private sector operations. According to Goldman Sachs estimates, assuming the shutdown lasts approximately six weeks, it will reduce the annualized economic growth rate by 1.15 percentage points in the fourth quarter of 2025. However, since some federal procurement and investment will be rolled over from the fourth quarter of 2025 to the first quarter of 2026, this adjustment is expected to provide a 1.3 percentage point boost to growth in the first quarter of 2026.
