![]() ![]() All of those estimates are subject to considerable uncertainty. 3 In the longer term, the legislation will reduce the level of real GDP, CBO estimates. 2 From fiscal year 2020 through 2023, for every dollar that it adds to the deficit, the legislation is projected to increase GDP by about 58 cents. 1 CBO estimates that the legislation will boost the level of real (inflation-adjusted) gross domestic product (GDP) by 4.7 percent in 2020 and 3.1 percent in 2021. Those laws, which contained a wide array of conventional and unconventional fiscal policies, will add $2.3 trillion to the deficit in fiscal year 2020 and $0.6 trillion in 2021, according to the Congressional Budget Office’s estimates.īy providing financial support to households, businesses, and state and local governments, the legislation will offset part of the deterioration in economic conditions brought about by the pandemic. In March and April of 2020, four major federal laws were enacted in response to the 2020 coronavirus pandemic. Corrections are listed at the end of the report. ![]() Numbers in the text, tables, and figures may not add up to totals because of rounding.įor a more detailed discussion of the methods that CBO used, see John Seliski and others, Key Methods That CBO Used to Estimate the Effects of Pandemic-Related Legislation on Output, Working Paper 2020-07 (Congressional Budget Office, forthcoming).ĬBO has corrected this report since its original publication. Unless the report indicates otherwise, all years referred to are calendar years. However, CBO did not construct a comprehensive projection of what the economy would have looked like without those legislative effects. Those effects were incorporated into the Congressional Budget Office’s July economic forecast ( The estimates in this report are presented in relation to an implied projection of real GDP that does not include the effects of the legislation-a projection computed by removing the estimated effects of the legislation from the July forecast. This report presents estimates of the effects of pandemic-related legislation on real (inflation-adjusted) gross domestic product. The estimates in this report are subject to considerable uncertainty, especially because of factors associated with the pandemic. By increasing debt as a percentage of GDP, the legislation is expected to raise borrowing costs, lower economic output, and reduce national income in the longer term. ![]() ![]() From fiscal year 2020 through 2023, for every dollar that it adds to the deficit, the legislation is projected to increase GDP by about 58 cents. CBO estimates that the legislation will increase the level of real (inflation-adjusted) gross domestic product (GDP) by 4.7 percent in 2020 and 3.1 percent in 2021. The legislation is projected to add $2.3 trillion to the deficit in fiscal year 2020 and $0.6 trillion in 2021. In this report, the Congressional Budget Office estimates the legislation’s effects on economic output. That legislation provides financial support to households, businesses, and state and local governments. In March and April of 2020, four major federal laws were enacted to address the public health emergency and the economic distress created by the 2020 coronavirus pandemic. ![]()
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