EY CEO Says US Shutdown to Have No Long Term Effect on GDP

It’s day 34 of the government shutdown, and both sides are standing their ground. Business leaders are warning that the longer the shutdown goes on, the bigger the economic pain on the country. This is affecting CEO and consumer optimism.

Yet EY’s Global Chairman and CEO Mark Weinberger does not believe the government shutdown will have a long-term effect on GDP. The bigger issue, he says, is America’s rising doubt the government will work together to pass any legislation over the next two years.

t the World Economic Forum in Davos, Switzerland, on Thursday, Weinberger told “Squawk Box” anchor Becky Quick that he’s “not someone who believes it has a huge effect on GDP. It has a very humanitarian effect. I mean, I see it; my neighbors aren’t getting paychecks. And we do a lot of filings with the SEC and it is slowing down IPOs, it is slowing down tax refunds. There’s a real effect, but as far as reducing the GDP over the long term, I think there are much bigger issues out there.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza