JP Morgan lowered their Q1 annualized real GDP growth projection from 2.25% to 2.0% due to the ongoing partial government shutdown.
“The primary reason for the downward revision is the economic impact of the ongoing shutdown of the federal government. As we discussed in previous research (link here) each week the government is shut down subtracts 0.1-0.2% from quarterly GDP growth,” reads the JPM note.
JPM has cut US GDP projection for Q1 from 2.25% to 2.0% due to impact of ongoing shutdown of fed govt. Each week govt is shut down subtracts 0.1-0.2% from quarterly GDP growth. Since output of govt sector not priced & sold in mkt, it has to be inferred by number of hours worked.
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