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Economist at the White house: “shutdown” may cause zero growth in the first quarter

Экономист Белого дома: «шатдаун» может стать причиной нулевого роста в первом квартале

The Chairman of the Council of economic advisers in the administration of President Donald trump said Wednesday that the United States will not be able to announce economic growth in the first quarter if the Federal government will not reopen.

“If [the shutdown] will last for the entire quarter, and given the fact that the first quarter tends to be low due to residual seasonality in the first quarter we can get a number very close to zero”, — said Kevin Hassett in an interview with CNBC.

On the question of whether GDP growth is to reach zero this quarter, Hassett replied, “Yes we can”.

“But again, the numbers in the second quarter could be good if the government reopened. It would be at 4 or 5 percent,” — said Hassett.

In recent decades, GDP growth in the first quarter was substantially weaker than growth in other neighborhoods.

Wednesday, January 23, the duration of the “shutdown” made up 33 days, with little sign of relief for the approximately 800,000 Federal workers not receiving wages. The Senate on Thursday is pursuing a vote on the competing proposals of the Republican and Democratic parties that will Fund the government until February 8. It is expected that none of these measures will not be adopted due to disagreement of the parties concerning the requirements of the President of Donald trump on the allocation of $ 5.7 billion for the construction of a wall along the border with Mexico.

Later, Hassett in an interview with CNN added that, in his opinion, the US and China may conclude a bargain until 2 March.

Recall that trade talks between Washington and Beijing have been going on for a long time against the background of a trade war between the two countries. The parties reached the truce after meeting trump with the President of China XI Jinping in Argentina on 1 December.

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