US economic growth to slow sharply next year – Goldman Sachs

Analysts at Goldman Sachs predict the US economic recovery to lose momentum significantly in 2022 amid fading services sector’s turnaround.

Key quotes

“Until a couple of months ago, our GDP growth forecast had been distinguished for the prior year by being well above consensus expectations.” 

“At this point, our forecast is instead distinguished from consensus expectations by the sharpness of the deceleration that we expect over the next year and a half,” 

“It is increasingly clear that while mass vaccination has had a huge impact on service sector activity, it is unrealistic to expect virus fears to instantly disappear entirely.”

“Consumption growth forecast slashed for the second half of this year, though maintained their GDP forecast on a yearly basis at 6.6%.”

“Unemployment rate forecast raised from 4.2% to 4.4% at the end of 2021.”