Goldman Sachs downgrades US growth forecast for Q1 & Q2 due to coronavirus

by   |  VIEW 339
Goldman Sachs downgrades US growth forecast for Q1 & Q2 due to coronavirus

On Sunday, the 15th of March 2020, the NY-based leading US lender and financial services provider, Goldman Sachs, the world’s No. 1 dealmaker, had slashed economic growth projection of the United States for Q1 and Q2 of 2020 amid rising risks of coronavirus-driven economic downfalls.

As a matter of fact, in a client note sent on Sunday (March 15th), the leading US lender was quoted saying that the US economy would highly likely to remain stagnant with a real gross domestic product growth of 0.0% during the Q1, 2020, while the lender had projected a growth of 0.7 per cent for the US economy earlier this year.

Apart from that, Goldman Sachs wrote in the client note that the world’s No. 1 dealmaker based on the numbers of M&A as of December 31st, 2019, had been expecting the US economy to contract by 0.5 per cent during Q2, 2020, down from an earlier projection of 0% growth over the second quarter of the year.

Meanwhile, referring to a gruesome impact of coronavirus over US businesses which would likely to reach a peak during Q2, 2020, Goldman said in its research note sent on Sunday (March 15th), “We expect U.S. economic activity to contract sharply in the remainder of March and throughout April as virus fears lead consumers and businesses to continue to cut back on spending such as travel, entertainment, and restaurant meals.

” Nevertheless, Goldman raised US economic growth forecast to 3 per cent from an earlier 1 per cent during Q3, 2020.