Donald Trump: U.S. government shutdown slowed economic growth by 'at least two points'
Donald Trump claims that the recent U.S. government shutdown has significantly impacted economic growth, suggesting a reduction of at least two percentage points in GDP due to a previous shutdown.
Donald Trump recently asserted that the U.S. government shutdown has caused a substantial slowdown in the country's economic growth, estimating a decrease of at least two percentage points in GDP. His comments came shortly before the Department of Commerce was set to release economic growth figures for the fourth quarter and projections for all of 2025. Traditionally, officials like the President are informed of such data before it is publicly released, making Trump's comments particularly notable, as it is rare for them to discuss embargoed information.
The shutdown referred to by Trump lasted from October 1 to November 12 of the previous year, marking the longest government shutdown in American history. Trump's remarks highlight the contentious political atmosphere surrounding government funding and budget negotiations, especially as another government shutdown commenced recently, albeit affecting only the Department of Homeland Security this time. Such circumstances raise concerns about the repercussions of political decisions on the economy, reflecting the broader implications of government operations on citizensβ financial stability.
Analysts anticipate that the upcoming economic data will shed light on the shutdown's actual impact on growth rates. Trump's statements may serve not only to frame the narrative around economic accountability but also to position himself and his party ahead of any upcoming electoral cycles, as public perception of economic management remains a critical issue for voters. It underscores the intersection of politics and economics in the public eye, particularly when government operations are interrupted by partisan disputes.