Although the economic impact of the US government shutdown remains small, its impact on confidence and the fragile global recovery could be much more severe

Although the economic impact of the US government shutdown remains small, its impact on confidence and the fragile global recovery could be much more severe. A chart by Business Insider shows that confidence has collapsed in the past week, likely due to the US government shutdown. With services dominating advanced economies and representing upwards of 60% of economic activity, confidence is a vital ingredient for achieving growth. Therefore, even a short shutdown is affecting the confidence in the economy through workers' lost wages especially those with mortgage repayments. With this in mind, a protracted shutdown could be disastrous for the US's tentative economic recovery. (VIEW LINK)