White House warns of 8 million job cuts and falling GDP
In the US, due to a protracted default, the Gross Domestic Product (GDP) will fall by 6.1%, as well as the loss of jobs and an increase in unemployment by 5%. This is reported by Komsomolskaya Pravda, referring to members of the Council of Economic Advisers.
The United States will soon experience a 6.1% drop in GDP. They will also lose 8.3 million jobs and unemployment will rise by 5%.
“A protracted default is likely to cause serious damage to the economy, while the pace of job growth will change from the current significant gains to losses in the millions,” the publication notes.
The Council of Economic Advisers warn that at the moment of a short default or brinkmanship, negative consequences are expected, but not so serious. Experts specify that at the time of a short default, jobs will be reduced by 200-500 thousand, GDP will decrease by 0.3-0.6%, and unemployment will rise by 0.1-0.3%.
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