Prolonged US government shutdown costs nearly 500 billion baht weekly
The prolonged US government shutdown is eating into its own economy, with losses nearing 500 billion baht after two weeks; Treasury Secretary Bessent warns the investment boom, especially in AI, could stall if the stalemate continues.
- The ongoing US government shutdown is estimated to be costing the American economy up to US$15 billion (approximately 480 billion baht) per week in lost output.
- This estimate was provided by a Treasury Department official, citing data from the White House Council of Economic Advisers.
- Secretary Bessent described the shutdown as an "increasingly serious drag" on the US economy, despite other positive investment trends.
According to Reuters, the ongoing US government shutdown — now stretching into its second week — may be inflicting losses of up to US$15 billion per week (about 480 billion baht) in lost economic output, a Treasury Department official said on Wednesday (October 15).
The clarification followed earlier misstatements by US Treasury Secretary Scott Bessent, who had previously suggested the figure was US$15 billion per day during two public appearances.
Officials said the revised estimate is based on data from the White House Council of Economic Advisers, which has been monitoring the shutdown’s economic toll.
Bessent acknowledged that the shutdown has begun to “cut into the fabric” of the US economy.
He noted that while the massive wave of investment — particularly in artificial intelligence (AI) — remains sustainable and still in its early phase, the government shutdown is becoming “an increasingly serious drag.”
Speaking at a CNBC event held alongside the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington, Bessent said there remains a significant amount of “pent-up demand” in the economy, adding that President Donald Trump’s policies have fuelled this economic boom.
“The only thing slowing us down here is this government shutdown,” he said.
Bessent added that Republican tax incentives and Trump’s import tariffs would help sustain the investment momentum, driving continued growth in the US economy.
Regarding the fiscal deficit, Bessent said the US government’s 2025 fiscal deficit, which ended on September 30, was smaller than the US$1.83 trillion shortfall recorded the previous year. He forecast that the deficit-to-GDP ratio could fall to around 3% within the next few years.
He added that the ratio could decline if the US “grows more, spends less, and reins in government expenditure.”
