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Report: Standard & Poor's claims gov't shutdown will cost more than border wall


Estimates cost to U.S. economy at $6 billion

Mark Wilson/Getty Images

The impact of the partial government shutdown on the U.S. economy adds up to at least $6 billion, more than the price tag for President Donald Trump's proposed border wall, according to information reported from financial rating agency Standard & Poor's.

Is this worse than initial estimates?

The rating agency said Friday the impact "likely worse than what we had previously expected," according to ABC News.

S&P previously estimated the impact at about $1.2 billion of real Gross Domestic Product for each week of the political impasse over the border wall along the Mexico border. But as the shutdown continued, that amount began to increase.

"Although this shutdown has ended, little agreement on Capitol Hill will likely weigh on business confidence and financial market sentiments," S&P said in a statement obtained by ABC News.

"Here, both direct costs, on lost productivity from furloughed government workers, and indirect costs, from lost economic activity to outside businesses because of the shutdown, amplified with each week the government remained closed," the statement read.

On Friday, Trump signed a bill to reopen the government for three weeks as Congress and the president continue negotiations.

The 35-day partial shutdown or the proposed wall along the Mexico border was the longest in history.

"We had expected that other indirect costs were likely just delayed, with businesses recouping some of those losses once the government reopens its doors. But, with a five-week closure, we suspect that more of those economic activities indirectly tied to the government may have been outright canceled," Standard & Poor's stated.

According to USA Today, costs associated with the shutdown include lost productivity from furloughed workers, uncollected tax revenue from lost business, back taxes that weren't collected, uncollected fees from National Parks that were closed, interest due on late federal payments, agency costs for conducting the shutdown and startup, and delays in companies filing initial public offerings.

What's next?

Standard & Poor's also expressed caution regarding whether the shutdown is truly over. Federal workers have told media they are also concerned about the possibility of having to live through another partial shutdown. Government workers who were furloughed under the partial shutdown have been promised they will receive all back pay.

"Although this funding battle has ended, the next one starts in a few weeks, which may reduce growth expectations if businesses and financial markets begin to expect that Congress and the president will repeat the experience again and again," the statement from Standard & Poor's read.

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