New York City lender Goldman slashes US economic growth forecast for 2021 & 2022

by   |  VIEW 1629

New York City lender Goldman slashes US economic growth forecast for 2021 & 2022

Late on Sunday, Goldman Sachs Group, Inc., the New York City-headquartered American multinational investment banking company had trimmed the United States' economic growth target to a 5.6 per cent for 2021 and a 4.0 per cent for 2022 citing an unprecedented decline in monetary support at end-2022 alongside a likely delay in recovery in consumer spending, the lifeblood of US economy accountable for roughly a two-third of entire economic activities in the country.

On top of that, according to a research published late in the day, the investment banking company was expecting a 5.7 per cent growth in US GDP (Gross Domestic Product) over 2021 alongside around a 4.4 per cent growth in 2022.

Meanwhile, the research had addressed a number of rancorous issues including a longer-than-anticipated rise in delta cases which could put a lid on virus-sensitive consumer services, while a global scale chip shortage would more likely to persist until Q1, 2022, eventually adding to hindrances in a pandemic-battered US economy.

Goldman Sachs trims US economic growth for 2021, 2022

Concomitantly, apart from an economic drag related to the pandemic, Goldman researchers said that they were expecting consumers' spending on particular non-durable consumer goods to remain well-below a pre-pandemic trend citing a mass-scale shift to work-from-home trend which is believed to have yielded a new consumers’ behaviour to spend less.

Apart from that, according to Goldman Sachs research report published late on Sunday, Goldman downgraded US Q4, 2021 and Q1, 2022 GDP growth estimates to 4.5 per cent and 5.0 per cent respectively, while it had scalped Q2, 2022 US economic growth projections to 4.0 per cent from an earlier 4.5 per cent and Q3, 2022 to 3.0 per cent from an earlier 3.5 per cent.

Nonetheless, the investment banking company had raised its Q4, 2022 estimate to 1.75 per cent compared to a prior reading of 1.5 per cent.