Goldman Sachs cuts its US economic growth expectation to 5.6 percent for 2021 and to 4 percent for 2022
A construction worker is seen at the site of a large public infrastructure reconstruction project of an elevated roadway and bridges in New York city on April 22, 2021.
The firm cited a gloomier outlook due to an expected decline in fiscal support through the end of next year and a more delayed recovery in consumer spending than previously expected. They pointed to a "longer lasting virus drag on virus-sensitive consumer services" as well as an expectation that semiconductor supply likely will not improve until the first half of 2022, delaying inventory restocking until next year.
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Goldman cuts forecast for U.S. economic growth in 2021 and 2022The firm previously expected 5.7% gross domestic product (GDP) growth in 2021 and 4.4% growth in 2022, according to research released on Sunday from authors including its chief economist Jan Hatzius. They pointed to a 'longer lasting virus drag on virus-sensitive consumer services' as well as an expectation that semiconductor supply likely will not improve until the first half of 2022, delaying inventory restocking until next year.
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