The Government Shutdown Will Be Devastating for the D.C. Region

Previous shutdowns had a significant impact on the regional economy. During the closure of the Government of 2013, which lasted a little more than two weeks, in the region of the Columbia district there was a reduction in personal consumer expenses by five percentage points, according to FISERV report 2023The field 35-day closure of the government, which covered the end of 2018 during the first few weeks of 2019, had a sharp impact on the regional economy. According to city officials, It costs DC Revenue worth more than 47 million dollars. Another assessment He found that during the first 25 days of January 2019, the region lost $ 1.6 billion. The United States in the field of economic activity and income, although some of them were compensated when federal employees were repaid.

But the current economic situation can aggravate the influence of shutdown. Moody's Analytics Estimates that the District Itself Will Experience a Decline in Gdp From The Second Quarter 2025 Through Quarter of 2026, With Federal Layoffs Leading to a Total Loss of 35,000 Jobs Through The Third Quarter of 2027. In the Larger DC Area, Begley Said that Projected GDP Decline Will Result in A Recession For the Second Half of 2025. The Private Secitor In DC and in the Metro Area IS Expected to be Largely stagnant.

The Bruckings report showed that in recent months in regional growth in the private sector of the plateau and may not be able to absorb additional federal losses of work. Moreover, industries in which the greatest growth is observed, such as construction and hospitality, do not necessarily correspond to the skills and experience of federal workers who may lose their work. This struggle can lead to the fact that former federal workers are a highly educated and highly paid population, in general, DMV is generally authorized, which, in turn, will lead to further economic losses in the region.