Goldman Sachs Group Inc. today released a report on the United States (U.S.) economic outlook. According to Goldman Sachs Group Inc., U.S. economic growth is likely to slow significantly in 2022 as the recovery of the services sector fades.
U.S. Bank expects the world's largest economy to only grow at 8.5% in the third quarter and 5% in the last quarter of 2021. Jan Hatzius, an economist, said in a report that, “the economic outlook this time is not the same as the previous economic projection because there are differences in economic development and the current situation. ”
Goldman Sachs Group says the ongoing outbreak of Covid-19 has constrained the development of several economic sectors such as the entertainment, recreation and other sectors. Working from home has not succeeded in reviving the service sector as expected.
They further said that although the vaccination program has a great influence on the activities of the service economy sector, it is not fair to say that vaccination can completely eliminate Covid-19 transmission.
Economists lowered their consumption growth forecasts in the second half of this year, even though the annual GDP forecast was at 6.6%. Goldman also raised its unemployment rate forecast from 4.2% to 4.4% by the end of 2021.
