RT.com
06 Dec 2021, 16:42 GMT+10
Goldman Sachs has downgraded its US economic growth forecast for 2022 from a previously expected 4.2% to 3.8%. The outlook was cut due to rising risks and uncertainty around the new Covid-19 variant, Omicron.
According to Goldman economist Joseph Briggs, who was cited by Reuters, the new coronavirus strain could slow the US' economic reopening, but is expected to have "only a modest drag" on service spending.
"While many questions remain unanswered, we now think a moderate downside scenario where the virus spreads more quickly but immunity against severe disease is only slightly weakened is most likely," Briggs said in a note on Saturday. He added that labor shortages could last longer if people do not feel comfortable returning to work due to Omicron.
READ MORE: US on the brink of default, think tank predicts
The spread of the virus could worsen supply shortages if other countries implement tighter restrictions, according to Goldman. However, the increase in vaccination rates among foreign trade partners could prevent severe disruptions, the report said.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Oregon Telegraph news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Oregon Telegraph.
More InformationHONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
NEW YORK, New York - Monday's trading session saw mixed performances across U.S. and global markets, with several major indices posting...
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person...
DUBAI, U.A.E.: Saudi Aramco is exploring asset sales as part of a broader push to unlock capital, with gas-fired power plants among...
MILAN, Italy: Italian regulators have flagged four non-EU countries—including Russia—as carrying systemic financial risk for domestic...
NEW YORK CITY, New York: With just weeks to spare before a potential government default, U.S. lawmakers passed a sweeping tax and spending...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
NEW YORK, New York - Monday's trading session saw mixed performances across U.S. and global markets, with several major indices posting...
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person...
DUBAI, U.A.E.: Saudi Aramco is exploring asset sales as part of a broader push to unlock capital, with gas-fired power plants among...
MILAN, Italy: Italian regulators have flagged four non-EU countries—including Russia—as carrying systemic financial risk for domestic...
NEW YORK CITY, New York: With just weeks to spare before a potential government default, U.S. lawmakers passed a sweeping tax and spending...