"CBO projects that over the 2020-2030 period, cumulative nominal output will be $15.7 trillion less than what the agency projected in January," the CBO said in a projection issued on Monday. "That difference constitutes 5.3 percent of the value for cumulative nominal GDP for that period that the agency projected in January."
In its report covering May 2020, CBO projected that the level of nominal GDP in the second quarter of 2020 would be $790 billion, or 14.2 percent lower than the agency had previously forecast in January.
"The two largest differences between the two forecasts result from the economic effects of the COVID-19 pandemic in reducing output and the legislation enacted between January and early May in response, which partly offsets that reduction," the CBO said.
Business closures and social distancing measures are expected to curtail consumer spending, while the recent drop in energy prices is projected to severely reduce US investment in the energy sector, the projection added.