Chat with us, powered by LiveChat
Notice: Markets are extremely volatile and volume is very high. Thank you for your patience with shipping delays.

Free Shipping!

Menu

GDP Forecast Lowered: Sachs Expects 4.6% Contraction in 2020

GDP Contraction
Print Friendly, PDF & Email

EDITOR NOTE: Goldman Sachs recently announced a positive projection for the economy assuming that states impose tighter COVID-19 restrictions, namely wearing masks. Countries (and a few states) that have imposed strict social distancing and mask-wearing restrictions have been able to recover more successfully than those with looser restrictions. How positive is Goldman’s prediction? A 4.6% 'contraction' in GDP.

(Bloomberg) -- Goldman Sachs Group Inc. economists revised down their estimates for the U.S. economy this quarter, but predicted it will be back on track in September after some states imposed fresh restrictions to combat the coronavirus.

While consumer spending appears likely to stall this month and next, economists led by Jan Hatzius said other economies have proved it’s possible to resume activity and changes in behavior such as wearing masks will help too.

“A combination of tighter state restrictions and voluntary social distancing is already having a noticeable impact on economic activity,” the economists said in a report published on Saturday.

The economists said they now expect the economy to grow 25% in the third quarter having previously predicted 33%. That would result in the economy slumping 4.6% this year, worse than the 4.2% previously seen.

But the Goldman Sachs economists said they still expected growth of 5.8% next year and now project unemployment will be at 9% at the end of this year, down from the previous estimate of 9.5%.

Originally posted on Yahoo! Finance

PDF-image-precious-metals

GET YOUR FREE DEFINITIVE GUIDE TO PRECIOUS METALS

  • This field is for validation purposes and should be left unchanged.

All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

Precious Metals Data, Currency Data , Precious Metals Automated Product Pricing Powered by nFusion Solutions