By Paul Kiernan 

The U.S. economy could take the better part of a decade to fully recover from the coronavirus pandemic and related shutdowns, the Congressional Budget Office said Monday.

In an analysis that highlights both the depth and duration of the pandemic's economic impact, the CBO said it has marked down its 2020-30 forecast for U.S. economic output by a cumulative $15.7 trillion, or 5.3%, relative to its January projections. Adjusted for inflation, the shortfall is estimated at $7.9 trillion, or 3% of cumulative gross domestic product.

Most of the gap results from the sharp contraction in economic activity this year, which was unforeseen when the CBO last published its 10-year outlook in January. The nonpartisan agency said last month it expects U.S. GDP to finish the year 5.6% lower than in the fourth quarter of 2019.

The analysis was contained in response to a letter from Senate Minority Leader Charles Schumer of New York.

Write to Paul Kiernan at paul.kiernan@wsj.com

(END) Dow Jones Newswires

June 01, 2020 17:02 ET (21:02 GMT)