The Congressional Budget Office (CBO) said the U.S. is likely to see through fiscal year 2030 a reduction of approximately $7.9 trillion in nominal gross domestic product adjusted for inflation due to the coronavirus pandemic, CNBC reported Monday.
According to CBO, the figure reflects a 3 percent drop from initial projections in January. Nominal GDP over the next decade is estimated to be 5.3 percent or $15.7 trillion less than the previous estimates.
“Business closures and social distancing measures are expected to curtail consumer spending, while the recent drop in energy prices is projected to severely reduce U.S. investment in the energy sector,” CBO Director Phillip Swagel said in a written response to Sen. Chuck Schumer's (D-N.Y.) inquiry. “Recent legislation will, in CBO’s assessment, partially mitigate the deterioration in economic conditions.”
Schumer said CBO’s projections suggest the need for the Senate to immediately pass another relief package.