CBO: A lost decade looms for America's economyThe CBO warns in a new analysis that the pandemic will reduce cumulative economic output over the next 10 years by $7.9 trillion, or 3% of GDP during the decade, compared to its projections from January. Without accounting for inflation, the damage totals $15.7 trillion, or 5.3% of GDP.
The CBO said the revisions reflect expectations of reduced consumer spending caused by business closures and social distancing. In addition, the recent drop in energy prices is expected to "severely" curtail investment in that sector, the CBO warned.
Recent legislation, which includes more than $2 trillion in stimulus, will only partially mitigate the economic fallout caused by the pandemic, the CBO said.
