WASHINGTON, DC-While some economists believe the automatic cuts from the sequester may not hurt the national economy too badly, they all seem to agree that it will damage the local DC economy in the short term.
Most economists expect the sequester cuts will hit the regional economy harder than just about any place in the nation, according to the Washington Post. Stephen Fuller, director of the Center for Regional Analysis at George Mason University, expects federal payrolls to fall 10% in the region to $37.9 billion in 2017 from $42.4 billion in 2012. He calculates contracting spending has fallen 8% the past two years and will drop an additional 5% this year and next year because of sequestration.
Fuller estimates The District, Maryland and Virginia combined will lose approximately 450,000 jobs as a direct and indirect result of the automatic spending cuts. See story in the Washington Post.
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