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Goldman Sachs revises its forecast for US GDP

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Goldman Sachs revises 2021 GDP growth estimate and S&P forecasts Description video: Yahoo Finance’s Brian Sozzi, Julie Hyman, and Myles Udland discuss Goldman Sach’s revising their 2021 forecasts.\n#2021GDP #S\u0026Pforecasts #2021outlook\n\nFor 2020 election results please visit:\nElection results: https://www.yahoo.com/elections\n\nSubscribe to Yahoo Finance: […]

Goldman Sachs revises 2021 GDP growth estimate and S&P forecasts

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Yahoo Finance’s Brian Sozzi, Julie Hyman, and Myles Udland discuss Goldman Sach’s revising their 2021 forecasts.\n#2021GDP #S\u0026Pforecasts #2021outlook\n\nFor 2020 election results please visit:\nElection results: https://www.yahoo.com/elections\n\nSubscribe to Yahoo Finance: https://yhoo.it/2fGu5Bb\n\nAbout Yahoo Finance: \nAt Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.\n\nAbout Yahoo Finance Premium: With a subscription to Yahoo Finance Premium, get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more.\nTo learn more about Yahoo Finance Premium please visit: https://yhoo.it/33jXYBp\n\nConnect with Yahoo Finance:\nGet the latest news: https://yhoo.it/2fGu5Bb\nFind Yahoo Finance on Facebook: http://bit.ly/2A9u5Zq\nFollow Yahoo Finance on Twitter: http://bit.ly/2LMgloP\nFollow Yahoo Finance on Instagram: http://bit.ly/2LOpNYz\nFollow Cashay.com\nFollow Yahoo Finance Premium on Twitter: https://bit.ly/3hhcnmV

Goldman Sachs revises its forecast for US GDP

Goldman Sachs expects US GDP to collapse 39% in Q2 and unemployment rate to rise from 15% to 25%.

The bank estimates that spending on consumer services fell 20% from its pre-viral volumes in April, while consumer transactions in the transportation, hospitality and entertainment categories fell 80-95%..

Despite the sharp fall in spending, Goldman Sachs believes that fiscal stimulus from Congress has significantly offset the blow to consumption and should help cushion the impact of the economic downturn, which could have been catastrophic..

The bank is now forecasting a deeper annual hit to economic growth, with GDP falling 39% in the second quarter versus its previous estimate of 34%. This will be followed by a faster recovery in the third quarter, with GDP rebounding 29% against its previous estimate of 19%.

Alternative data from sources such as Foursquare and the Google Community Mobility Index suggests consumer activity is picking up.

Goldman Sachs expressed confidence that economic indicators should progress from April for several reasons. First, most states began to loosen restrictive measures.. In addition, businesses and the public are likely to adapt to minimize the economic costs of social distancing..

On the other hand, a strong and rapid recovery in US economic activity, like what has happened in China over the past few months, may not work in American realities..

Goldman Sachs revises its forecast for US GDP

«China has responded to the virus faster and more efficiently than the United States, and has an economy that is more industrial-minded, allowing for quicker recovery.», – celebrate at the bank.