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Goldman Sachs cuts US GDP growth forecast for 2022 due to concerns about Omicron | WSAU News / Talk 550 AM · 99.9 FM

(Reuters) – Goldman Sachs on Saturday cut its US economic growth outlook to 3.8% for 2022, citing risk and uncertainty around the emergence of the Omicron variant of the coronavirus.

Goldman economist Joseph Briggs said in a note that the Omicron variant could slow economic reopening, but the company expects “only a modest drag” on services spending. .

The company now posts 2022 gross domestic product (GDP) growth of 3.8%, down from the previous 4.2% on a full-year basis and Q4/Q4 growth of 2.9%, down from 3.3% previously, Briggs said.

“While many questions remain unanswered, we think a moderate reduction scenario is where the virus spreads more rapidly but immunity against severe illness is only slightly weakened,” he said. .

The labor shortage could linger longer if people don’t feel comfortable returning to work, according to the note.

Goldman pointed out the spread of the virus could exacerbate supply shortages if other countries implement tighter restrictions, but increasing vaccination rates among foreign trading partners would prevent serious disruptions.

Goldman Sachs’ US forecast comes after International Monetary Fund CEO Kristalina Georgieva said on Friday that the lender is likely to lower its estimate of global economic growth due to the new Omicron variant. of coronavirus.

(Reporting by Jahnavi Nidomolu in Bengaluru; Editing by Alistair Bell)

https://wsau.com/2021/12/04/goldman-sachs-cuts-u-s-gdp-growth-forecast-for-2022-over-omicron-fears/ Goldman Sachs cuts US GDP growth forecast for 2022 due to concerns about Omicron | WSAU News / Talk 550 AM · 99.9 FM

Dais Johnston

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