Government Shutdowns Affect the Economy
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A board at the closed Eiffel Tower during a new round of strikes and protests to denounce spending cuts and demand higher taxes on the rich, 2 October, 2025
It remains unclear how long the shutdown will last. Recent ones have tended to last longer—such as the record 35-day shutdown in 2018-19—but their economic impact was limited. That may well be the case this time, but a few wrinkles in today’s economy and a larger change in politics could complicate things.
The US economy’s rebound in the second quarter was stronger than previously reported, thanks to consumers who stepped up their spending despite jitters over President Donald Trump’s trade war. Gross domestic product, which measures all the goods and ...
OTTAWA, Aug 29 (Reuters) - Canada's economy contracted in the second quarter much more than anticipated on an annualized basis as U.S. tariffs squeezed exports, but higher household and government spending cushioned the impact, data showed on Friday.
The stock market is shrugging off worries about a weakening labor market and stubborn inflation, instead embracing a much-anticipated interest rate cut.