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D.C. Region’s Economy Expected to Shrink in 2020
With the continued worsening of the pandemic in the Washington, D.C. region, the economy is projected to contract 0.8% in 2020 and rebound 3% in 2021, says an updated assessment from the Stephen S. Fuller Institute at George Mason University. The contraction for 2020 replaces a projection two weeks earlier that the region would manage 0.1% growth this year.
The current scenario assumes “current containment strategies are sufficient, normal business operations return in July and consumer confidence and spending returns quickly,” according to the update. “The regional outlook continues to have considerable uncertainty, and even a modestly longer or more severe pandemic would result in a significantly larger contraction and a slower recovery.”
A more severe or prolonged pandemic that lasts past July would deepen the productivity losses associated with the region’s professional firms, increase credit and financial constraints, and disrupt supply chains beyond manufacturing and transportation, the update says.
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- ◦Economy
