Goldman Sachs Cuts US GDP Estimates

Goldman Sachs cut its forecast for GDP growth in the United States by 34% in the second quarter on an annual basis compared to its previous estimate for a decrease of 24% and also reduced its estimates for the first quarter to 9% from its previous forecast, down 6%.

Despite the uncertainties caused by the Corona virus, Goldman said that closing the economy and social separation would severely reduce new cases of the virus, which could pave the way for a gradual recovery in output from May and June.

That is why the bank raised its forecast for GDP growth in the third quarter by 19% on a quarterly basis from its previous estimates by 12%, and it is expected that easing monetary and fiscal policy to help contain the virus has a major impact on the economy and increasing growth in the future.