The boost from the infrastructure bill to the economy will likely be limited

WASHINGTON — The bipartisan infrastructure bill is unlikely to have a big impact on growth in the next few years, economists say. In the longer term, however, investments in highways, ports and broadband could make the economy more efficient and productive.

The short-term boost to growth will be relatively limited for two reasons, economists say. On the one hand, the bill represents just $ 550 billion in new spending, compared to the nearly $ 6 trillion that Congress approved in the past year and a half to tackle the Covid-19 pandemic. and its economic benefits.

Second, infrastructure spending will roll out over five to 10 years from 2022, a longer timeframe than pandemic-era initiatives such as stimulus checks, additional unemployment benefits, and small support programs. companies. This will make its direct effects on employment and demand less noticeable.

Alec Phillips, chief economist at Goldman Sachs Research, said the infrastructure bill could add about 0.2 percentage point to gross domestic product growth next year and 0.3 percentage point in 2023 .

By comparison, President Biden’s $ 1.9 trillion US bailout, passed by Congress in March, is expected to increase government spending by the equivalent of 4.9 percent of GDP over the course of the year. current fiscal year, according to the Congressional Budget Office.