COVID-19 will have a decade-long impact on the economy according to the Congressional Budget Office.
CBO Key Points
- CBO projects that over the 2020–2030 period, cumulative nominal output will be $15.7 trillion less than what the agency projected in January.
- CBO projects that over the 11-year horizon, cumulative real output (in 2019 dollars) will be $7.9 trillion, or 3.0 percent of cumulative real GDP, less than what the agency projected in January
- CBO also marked down its projection of nominal output because the agency expects that inflation will be weaker as a result of the pandemic.
- Lower projected inflation rates, particularly in 2020 and 2021, reduce the level of prices and nominal GDP relative to what CBO projected in January.
That PDF was a summary sent to Senate Democrat Leader Charles Schumer.