US Treasury Secretary Tells How Boeing’s Issues Will Affect State Economy

US Treasury Secretary Tells How Boeing's Issues Will Affect State Economy

The difficulties faced by the American company Boeing, can collapse the US economy. This assumption was made by Minister of Finance Steven Mnuchin. According to him, the country risks losing up to 0.5 percent of GDP. The words of the politician are quoted by CNBC.

“There is no doubt that the situation with Boeing will slow down GDP growth,” the minister summed up and added that the company is the largest exporter.

Mnuchin said earlier that US GDP growth would be 2 to 3 percent. Washington believes that significant economic growth will be achieved through the conclusion of a trade agreement with China. It is planned that the signing of the first agreement will take place in the near future.

In December 2019, Boeing announced that it intends to cease production of the Boeing 737 MAX for an indefinite period. This happened after two plane crashes – in Indonesia in October 2018 and in Ethiopia in March 2019.In total, 346 people died. In January 2020, Spirit AeroSystems, one of the main suppliers of parts for Boeing 737 MAX aircraft, decided to lose some of its employees. About 2.8 thousand people will fall under the reduction.

It was reported that the head of the Boeing Dennis Muilenburg corporation was released without severance pay.

Recall, the American company Boeing dismissed its CEO Dennis Muilenburg for the inability to restore the trust of customers and regulators after two deadly air crashes. After the publication of the news about the change of leadership, the company’s share price rose 2.5% even before the market officially opened.

As reported, UIA’s Boeing 737 crashed near Tehran about three minutes after taking off from Imam Khomeini Airport. Onboard there were 167 passengers and 9 crew members. They all died.

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