The Border Wall Shutdown in the U.S. has Shut down Global Growth

The border wall is becoming a serious issue in the U.S.

The partial government shutdown is having some serious impact on the economy of the country. All types of government services such as aviation, repairs and other main services are affected. The worst affected are low-income families.

The shutdown is removing around 0.13 percent of economic growth per week from the country.

The Federal Reserve chief Jerome Powell has said that the speed at which the interest rates are hiked will be softened for now. The slowdown in the economy has made him take such steps.

President Trump wanted to build the border wall between the U.S. and Mexico. The chief reason cited was to prevent illegal immigrants from entering the country.

Businesses are losing out on the government shutdown and consumers are feeling the repercussions of the shutdown. Consumer confidence has come down to its lowest level under President Trump, says a survey conducted by the University of Michigan.

Christine Lagarde, the Managing Director of IMF has stated that global growth is declining sharply. The world economy is slowing down and risks are rising.

The IMF has scaled back growth forecasts along with the downward revision by investment banks and the Federal Reserve. The IMF has predicted 3.5 percent growth for 2019 and 3.6 percent growth for 2020. This number is slightly less than the forecast figure of 3.7 percent, for the same period.

Tariff war between China and the U.S. is another factor that has contributed to the global growth deceleration. The partial government shutdown is the longest ever in the history of the U.S. which is bringing down the economic growth.

The Davos Summit that is taking place has some chief leaders missing from it. Apart from President Trump, the British Prime Minister Theresa May and French President Emmanuel Macron are also found to be missing.

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