The Strategist

Goldman Sachs lowers growth forecast 2023 for USA economy

09/19/2022 - 09:47

Goldman Sachs reduced its 1.5% to 1.1% growth forecast for the US economy in 2023.

Noah Wulf
Noah Wulf
According to Bloomberg, Goldman Sachs has cut its projection for the growth of the US GDP. The new forecast states that instead of 1.5% growth in 2023, the US economy will expand by 1.1%. The forecast for 2022 stayed at 0%.

The American investment bank had previously updated its projections for the Fed's rate hike. The bank's analysts predict that the regulator will raise the rate by 50 basis points in November 2022 and by 75 basis points in September 2022. Prior to this, they each expected an increase of 50 and 25 basis points.

"Given this upward trend in rates and the recent tightening of financial conditions, it appears that growth and employment prospects for 2019 will be somewhat less favorable, " reads Goldman’s memo quoted by Bloomberg.

Goldman experts increased their forecast for the unemployment rate in the United States to 3.7% by the end of 2022 (instead of the previously anticipated 3.6%). The new estimate expects that unemployment will reach 4.1% by the end of 2023 (up from 3.8% in the prior forecast) and 4.2% by the end of 2024 (down from 4% earlier).