WASHINGTON: The ongoing U.S. government shutdown has plunged the flow of official economic data into data darkness, raising concerns for policymakers worldwide. Countries such as Japan rely heavily on U.S. economic indicators to guide decisions on trade, currency, and inflation.
Bank of Japan Governor Kazuo Ueda called the situation “a serious problem” on October 3, highlighting the difficulties faced in determining when to resume interest rate adjustments. Japanese officials worry that prolonged data darkness could complicate policy decisions and increase the risk of economic missteps.
An anonymous Japanese policymaker expressed frustration, stating that the Federal Reserve claims its policy is “data-dependent,” yet no official U.S. data is currently available. The shutdown has effectively created uncertainty about the world’s largest economy, which accounts for roughly one-fourth of global output.
Bank of England policy member Catherine Mann noted that, while U.S. trade policy shifts affect prices and exports directly, the absence of timely economic data adds another layer of risk. Over time, gaps in reliable information can weaken confidence in currencies and global financial stability, a process she likened to the “termites” that gradually erode economic foundations.
Finance and economic leaders gathered in Washington this week for IMF and World Bank meetings are grappling with these issues. The sudden stop of official U.S. data is symbolic of deeper governance challenges, including political interference in institutions such as the Federal Reserve and the Bureau of Labor Statistics.
The IMF’s World Economic Outlook warned that pressures on data-collection institutions could erode public and market trust. Prolonged data darkness may complicate policy decisions, reduce confidence in official statistics, and increase the likelihood of policy mistakes globally.
In other news read more about Global Tech Titans Gather in Dubai for GITEX 2025 to Redefine the Future of AI and Quantum Innovation
While the government shutdown could end and data flow resume, experts caution that even temporary periods of data darkness underscore vulnerabilities in reliance on official U.S. information. Policymakers around the world are now navigating uncertainty amid ongoing economic, geopolitical, and trade challenges.
