Top
image credit: Unsplash

Goldman cuts US first-quarter GDP forecast to just over 1% on the coronavirus

February 24, 2020

Via: CNBC

Goldman Sachs lowered its U.S. growth outlook for the first quarter as the domestic economy takes a hit from the global coronavirus outbreak.

The bank slashed its U.S. GDP growth forecast to just 1.2% from 1.4%, seeing a more severe drag from the epidemic. That growth rate is drastically slower than the 2.1% increase in the fourth quarter and 2.3% for the full year 2019.

“The risks are clearly skewed to the downside until the outbreak is contained,” Jan Hatzius, Goldman’s chief U.S. economist, said in a note on Monday. “An increasing amount of companies [are] suggesting potential production cuts should supply chain disruptions persist into Q2 or later.”

Read More on CNBC