Business News Business Article Business Journal Goldman Sachs cuts U.S. GDP growth forecast for 2022 over Omicron fears

Economic Indicators10 hours within the past (Dec 04, 2021 06: 52PM ET)

(Reuters) – Goldman Sachs (NYSE:) on Saturday lower its outlook for U.S. financial growth to a couple.8% for 2022, citing risks and uncertainty round the emergence of the Omicron variant of the coronavirus.

Goldman economist Joseph Briggs acknowledged in a tag that the Omicron variant could presumably per chance sluggish financial reopening, but the company expects “handiest a modest journey” on provider spending.

The company now sees 2022 corrupt home product (GDP) growth of three.8%, down from 4.2% beforehand on a rotund year basis, and Q4/Q4 growth of two.9%, down from 3.3% sooner than, Briggs acknowledged.

“Whereas many questions remain unanswered, we now judge a practical downside scenario the effect the virus spreads extra fleet but immunity against extreme illness is handiest a small bit weakened is presumably,” he acknowledged.

Employee shortages could presumably per chance final longer if americans enact now now not genuinely feel elated returning to work attributable to the variant, in protecting with the tag.

Goldman pointed the unfold of the virus could presumably per chance worsen provide shortages could presumably per chance soundless other international locations implement tighter restrictions, but amplify in vaccination charges among distant places trade partners would prevent extreme disruptions.

Goldman Sachs’ U.S. forecast comes after the International Monetary Fund Managing Director Kristalina Georgieva acknowledged on Friday that the lender turned into at threat of lower its global financial growth estimates attributable to the unique Omicron variant of the coronavirus.

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