Goldman cuts U.S. GDP outlook over Omicron fears
The new Omicron variant may soon take its toll on the U.S. and global economy.
Goldman Sachs on Saturday slashed its outlook for U.S. economic growth next year to 3.8% from 4.2%. Its economist said the variant could slow economic reopening with worker shortages lasting longer if people feel uncomfortable about returning to work and tighter restrictions worsening supply shortages.
Goldman’s domestic forecast comes just after the IMF Managing Director Kristalina Georgieva told the Reuters Next conference the global lender is likely to lower its global economic growth forecast, pointing the finger at Omicron.
“A new variant that may spread very rapidly can dent confidence. And in that sense, we are likely to see some downgrades of our October projections for global growth."
With Omicron spreading to at least 40 countries, many governments have tightened travel rules to try to keep it out.
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