The firm had earlier expected 5.7 percent gross domestic product (GDP) growth in 2021 and 4.4% in 2022
Goldman Sachs has lowered its US economic growth target to 5.6% for 2021 and 4% for 2022, citing an expected decline in fiscal support by the end of next year and a more delayed recovery in consumer spending than previously thought. .
The firm previously expected 5.7% gross domestic product (GDP) growth in 2021 and 4.4% in 2022, according to research released Sunday by authors including its chief economist Jan Hetzius.
He pointed to a “long-lasting virus drag on virus-sensitive consumer services” as well as an expectation that semiconductor supply likely won’t improve until the first half of 2022, delaying inventory restocking until next year.
Yellen doubles down on the need for a global minimum tax
And on top of the near-term virus drag, they expect spending on certain services and non-durables to remain well below pre-pandemic trends, especially “if remote work changes.” As a result some workers spend less.”
On a quarterly basis, Goldman cut its fourth quarter 2021 and first quarter 2022 GDP estimates from 5% to 4.5% and its second quarter 2022 forecast from 4.5% to 4%, while the third quarter lowered the estimate to 3%. From 3.5%.
Get Granthshala Business on the go by clicking here
However, it raised the forecast for the fourth quarter of 2022 to 1.75% from 1.5%.