GDP expectations to be lowered due to Boeing’s 737 Max situation

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The expectations for the numbers which reflect the economy of United States in the year 2020 are going to be needing some tempering as Boeing has been struggling to get back the 737 Max. Steven Mnuchin who is the Treasury Secretary has said that for the current year they have been looking at a level of 2.5% and 3% but said that it is going to be nearer to 2.5 as they would have to adjust for the numbers of Boeing as per Mnuchin who added that this would have been 3% if not for Boeing. He said that there is no doubts about the USCMA along with the China deal will be adding to the growth significantly.

The 737 Max form Boeing is their best-selling product and has been grounded after March post two crashes in a period of lesser than six months which killed as many as 346 people.

Mnuchin says that there is no question about the Boeing situation slowing the GDP numbers down. He said that Boeing had been among the largest of the exporters due to the 737 Max and this might impact the GDP levels by an estimated 50 basis points in the year however he maintained that they were looking at the growth being very healthy in the year 2020.

The situation around the 737 Max may cut the growth of GDP by 2020 by an approximate half of percentage point as per the economists who had made this estimate in the month of December.

The fallout has been immense for Boeing and the executives are being grilled over these clashes by the Congress members and there has been a resignation of their former CEO.

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