A prolonged default in the United States of America could lead to a 6.1% fall in GDP and the loss of 8.3 million jobs. This conclusion was made by White House economic consultants. They reported on the state of the US economy in an analytical document.
“If the US government defaults on its obligations to creditors, contractors and citizens, then the economy will quickly move in the opposite direction, and the severity of the losses will depend on how long the default lasts,” TASS quoted in the document.
Earlier, the US Treasury issued a warning that Washington may not be able to service its public debt as early as June 1. Department chief Janet Yellen called for an urgent increase in the borrowing limit before then to avoid the first default in US history.
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