Economists cut 2022 growth forecasts

Vaccination drive: People wait in long lines at Times Square, New York City, to get tested for Covid-19. With the economy struggling, the Biden administration also faces criticism from health experts amid a surge in Covid-19 infections. — AFP

WASHINGTON: Some economists expect the United States economy to grow more slowly next year after a key Democratic lawmaker dealt a seemingly fatal blow to President Joe Biden’s US$1.75 trillion (RM7.37 trillion) spending plan, further clouding an outlook that was facing heightened risk from the rapid spread of the Omicron variant of Covid-19.

Goldman Sachs lowered its gross domestic product (GDP) growth forecast for 2022 as did Mark Zandi, chief economist for Moody’s Analytics, after US Senator Joe Manchin said on Sunday he could not support Biden’s ambitious “Build Back Better” (BBB) proposal, which would expand the social safety net and tackle climate change.