{"id":2063,"date":"2020-03-17T01:23:47","date_gmt":"2020-03-17T01:23:47","guid":{"rendered":"http:\/\/www.maxlee.info\/blog\/?p=2063"},"modified":"2020-03-18T04:29:19","modified_gmt":"2020-03-18T04:29:19","slug":"goldman-says-u-s-growth-will-shrink-5-percent-next-quarter","status":"publish","type":"post","link":"https:\/\/www.maxlee.info\/blog\/news\/goldman-says-u-s-growth-will-shrink-5-percent-next-quarter\/","title":{"rendered":"Goldman says U.S. growth will shrink 5% next quarter and here\u2019s how low stocks could go"},"content":{"rendered":"

U.S. growth will shrink 5% in the next quarter and the coronavirus outbreak will \u201cprobably\u201d lead to a recession, Goldman Sachs said.<\/p>\n

<\/p>\n

\"Goldman<\/p>\n

Published: March 17, 2020 at 7:02 a.m. ET, By Callum Keown<\/p>\n

The investment bank\u2019s economic research team, led by Jan Hatzius, said economic activity would \u201ccontract sharply\u201d for the rest of March and April as consumers and businesses cut back on spending. They expected a recovery after April, though that was uncertainty, but said their new forecasts \u201cprobably\u201d met the criteria for a recession.<\/p>\n

They expected real GDP growth of 0% in the first quarter and a contraction of 5% in the second quarter. \u201cThis takes our 2020 GDP forecast down to +0.4%(from 1.2%). The uncertainty around all of these numbers is much greater than normal.\u201d<\/p>\n

The team said the prospect of a recovery and strong growth in the second half were dependent on whether social distancing and warmer weather reduces the number of virus cases, how quickly reduced infections will bring a return to normality and how effective fiscal and monetary policy turns out to be.<\/p>\n

Goldman Sachs chief equity strategist David Kostin said, in a separate note, the S&P 500 could fall to as low as 2,000 points<\/a> if the economic impact of the virus worsens but expected the index to reach 3,200 by the end of 2020.<\/p>\n

The S&P 500 has fallen 26% so far this year, while the Dow Jones Industrial Average US:DJIA has dropped 29%. The Dow suffered its second worst day ever<\/a> on Monday, falling 2,997 points – 12.9% – only behind 1987\u2019s Black Monday crash.<\/p>\n

Source: www.marketwatch.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. growth will shrink 5% in the next quarter and the coronavirus outbreak will \u201cprobably\u201d lead to a recession, Goldman Sachs said.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-2063","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/posts\/2063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/comments?post=2063"}],"version-history":[{"count":0,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/posts\/2063\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/media?parent=2063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/categories?post=2063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/tags?post=2063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}