Goldman Sachs cuts US growth forecast due to Omikron

Goldman Sachs cuts US growth forecast due to Omikron


Photo: ANP

Investment bank Goldman Sachs cuts growth forecast for the US economy due to the rise of the Omikron variable for the coronavirus. Economists say Omikron will lead to a slowdown in growth.

Goldman Sachs now expects 3.8 percent growth for the world’s largest economy this year, from a previous forecast of 4.2 percent. A 2.9 percent increase is now expected for next year. Previously, that was 3.3 per cent.

US bank economists say there is still a lot of uncertainty about Omikron, but that this alternative could cause additional disruptions to supply chains, just as in aviation. Goldman Sachs said people may also become more reluctant to return to the office due to the prevalence of the alternative.

Earlier, the Organization for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF) warned that global economic growth could be undermined by Omikron.

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