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Could Coronavirus Lead to ‘Lost Decade’ of Economic Growth?
June 2, 2020
Those of us hoping for a swift economic recovery from coronavirus pandemic and economic shutdown may have gotten some bad news. According to the Congressional Budget Office, a nonpartisan governmental agency, the U.S. economy may have been set back nearly a decade in terms of growth potential.
The CBO recently marked down its 2020-30 forecast of U.S. economic output by $7.9 trillion from its January predictions. According to the new forecast, GDP will not meet its previously projected level until the fourth quarter of 2029.
The CBO notes that the $3 trillion in stimulus spending the government has implemented thus far will only “partially mitigate the deteriorations in economic conditions.”
