EconomyInvestingJobsLocalMarketsMoneyPoliticsRegionsWorldGovernment shutdown costs economy $3 billion

The Congressional Budget Office reports that the 35-day partial government shutdown, the longest in history, cost the economy $3 billion that won’t be recovered.

The Internal Revenue Service was among the agencies affected. Because it had to cut down compliance activities during the shutdown, the government’s tax revenue will be $2 billion lower this fiscal year.

The CBO does not estimate indirect costs that were certainly related to the shutdown, such as risks to the health of the economy or businesses having to slow down because of a lack of permits or loans they needed government workers to fulfill.

“Underlying those effects on the overall economy are much more significant effects on individual businesses and workers,” the agency says. “Among those who experienced the largest and most direct negative effects are federal workers who faced delayed compensation and private-sector entities that lost business. Some of those private-sector entities will never recoup that lost income.”