fbpx
White House ‘Social Media Summit’: No Facebook, No Twitter, No Transparency CopyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more

US GDP growth forecast lowered to 5.7%: Goldman

show caption
AFP Photo
Print Friendly and PDF

Sep 08, 2021 - 03:39 AM

ANKARA (AA) – The US’ gross domestic product (GDP) forecast for 2021 and 2022 is lowered by Goldman Sachs on Tuesday.

The American multinational investment bank and financial services company has lowered its GDP growth forecast for this year to 5.7%, from 6.2%.

This marked the second time in a month that the New York-based firm has cut its GDP forecast for the US after Aug. 18 when it steeply lowered the third quarter estimate to 5.5% from 9%.

Goldman Sachs said the downgrade reflects “a larger effect of the Delta variant on services spending,” adding: “Although we expect the Delta setback to be brief, two longer-standing concerns pose challenges for consumption growth over the next few quarters.”

“The Delta variant is already weighing on Q3 growth, and fading fiscal stimulus and a slower service sector recovery will both be headwinds in the medium term,” it said.

First, the firm said it believes the US government’s fiscal impulse will fade sharply from its second quarter peak through the end of 2022.

Second, it said US consumers will need to rotate from a high level of spending back to normal on services, noting “Spending on goods is likely to continue falling, though delayed purchases due to shortages of items such as new cars should slow the decline.”

Goldman Sachs, however, lifted its 2022 growth forecast for US GDP to 4.6%, from 4.3%.

  • bio
  • twitter
  • facebook
  • latest posts

LMBCBUSINESS.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.