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Boeing’s problems will negatively affect US economy growth

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Boeing’s problems will negatively affect US economy growth
January 13
13:00 2020

According to Steven Mnuchin, Secretary of the Treasury, the problems of the Boeing concern will cost the national economy 0.5% of the GDP growth rate.

During an interview with Fox News, the minister noted that the difficult situation of the aircraft concern would affect the economic growth. Boeing is the largest US exporter. The suspension of the production and operation of the 737 Max will certainly affect the economy.

Mnuchin believes that in 2020, GDP will grow by about 2.5-3%. However, it is better to focus on the lower border because of Boeing. “If this problem did not exist, we could talk about a 3% growth. Contracts with Mexico and Canada, as well as progress in relations with China, will support GDP growth,” Mnuchin emphasizes.

Because of the two catastrophes, models of Boing 737 Max were removed from flights around the world in March. It is still unknown when exactly the planes can be returned to operation. In December, the company said they were temporarily suspending production of Boeing 737 Max.

In 2019, Boeing’s capitalization lost $ 50 billion.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

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