The Strategist

Goldman Sachs cuts US GDP growth forecast for 2022

12/06/2021 - 06:47

According to Goldman Sachs, US GDP will expand by 3.8 percent in 2022, lower than the 4.2 percent originally predicted. The omicron strain, according to the bank's economist Joseph Briggs, may impede the economic recovery, reports Reuters.

According to this economist, GDP growth in the fourth quarter of 2022 will be 2.9 percent compared to the current quarter, down from a previous estimate of 3.3 percent.

"While many issues remain unresolved," Mr. Briggs added, "we now feel the most plausible scenario is one in which the virus spreads quicker but the immune system's resistance to the disease's severe course is only somewhat impaired."

If people are hesitant to return to work because of the risk of getting omicron, labor shortages might last longer. Furthermore, the propagation of the virus, according to Goldman Sachs, might exacerbate the shortage of commodities. Increasing the number of immunized residents in trade nations, on the other hand, would avert severe scenarios, according to the expert.