Goldman Sachs cuts US GDP growth forecast for 2022 over Omicron fears | The Blog 101

0
46
- Advertisement -


Omicron poses 3 major threats to the US economy, says Jerome Powell
Goldman economist Joseph Briggs said in a note that the Omicron variant could slow economic reopening, but the firm expects “only a modest drag” on service spending.

The firm now sees 2022 gross domestic product (GDP) growth of 3.8%, down from 4.2% previously on a full year basis, and Q4/Q4 growth of 2.9%, down from 3.3% before, Briggs said.

“While many questions remain unanswered, we now think a moderate downside scenario where the virus spreads more quickly but immunity against severe disease is only slightly weakened is most likely,” he said.

Worker shortages could last longer if people do not feel comfortable returning to work due to the variant, according to the note.
Here's how Omicron could make the supply chain mess worse
Goldman pointed the spread of the virus could worsen supply shortages should other countries implement tighter restrictions, but increase in vaccination rates among foreign trade partners would prevent severe disruptions.

Goldman Sachs’ U.S. forecast comes after the International Monetary Fund Managing Director Kristalina Georgieva said on Friday that the lender was likely to lower its global economic growth estimates due to the new Omicron variant of the coronavirus.

Liked it? Let's talk about it on our forum! If you Dare!

- Advertisement -

I DARE!!!

Denial of responsibility! - If you are a regular visitor then ignore this...
Read Full Details




For Latest Updates Follow us on Google News

**If you have any Query Related This Post then here is the Source Link**

- Advertisement -