U.S. Shutdown Risks Major Economic Impact

A potential government shutdown in the U.S. could trigger significant economic repercussions, according to Goldman Sachs economist Alec Phillips. The economist warns that the shutdown’s impact may be one of the most severe ever recorded, exceeding even the 35-day shutdown of 2018-2019. The extended shutdown is expected to affect more institutions and industries, potentially lasting six weeks. This prolonged closure is projected to reduce fourth-quarter economic growth by 1.15 percentage points, with recovery anticipated in early 2026.