Goldman Sachs nudges United States growth forecast higher on Biden stimulus


NEW YORK: Analysts at Goldman Sachs Group raised their United States growth forecast for the second time this month on expectations that President-elect Joe Biden’s fiscal stimulus plan will hasten the economy’s recovery from the Covid-19 pandemic.

The bank expects economic growth of 6.6% in 2021, compared with a previous forecast of 6.4%, according to a report published on Saturday.

It also raised forecasts for how much stimulus the new administration will be able to push through in the near-term, to US$1.1 trillion from US$750bil.

Biden outlined a US$1.9 trillion stimulus package proposal on Thursday, saying bold investment was needed to jump-start the economy and accelerate the distribution of vaccines to bring the coronavirus under control.

It includes several immediate relief items that are popular with a wide swath of Americans, including sending another US$1,400 in direct stimulus payments.

“Larger boosts to disposable income and government spending imply stronger growth later in the year, ” the bank’s analysts wrote. — Reuters

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