Goldman Sachs Lowers Economic Outlook, Citing the Rise in COVID-19 Cases
Goldman Sachs (NYSE: GS) lowered its outlook for the United States economy on Monday. The financial juggernaut now expects to see a higher 4.6% slowdown in U.S. growth for 2020. That's compared to a previous estimate of 4.2%. Goldman's chief economist, Jan Hatzius, sees the increase in COVID-19 cases domestically as a hindrance to the economic rebound.
The forecast wasn't all grim. Goldman Sachs still sees growth jumping 5.8% next year. By this September, it thinks that the economy can be back in growth mode, since there is potential for the U.S. to adapt to a safer reopening that has been demonstrated internationally.
There is a great deal of uncertainty surrounding the economic reopening in the United States. Different states have taken different approaches to reopening for business, and the case spikes display those trends. This creates an impasse where state and federal governments need to find a way to impose the social distancing necessary to cut down infection rates, while also allowing commerce to thrive.
Source Fool.com
