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Thursday 25 January 2018

GS: Stopping the US government will take 0.2% of the GDP growth

The US investment bank Goldman Sachs predicts that the US government's shutdown will reduce GDP growth by 0.2% in the first quarter, but will soon be lived thru.
The negative effect is expected to be offset in the second quarter of the year if it is assumed that the government's shutdown will be restored by then.
According to the bank, the impact of this event on the financial markets will be "minimal".
Such government stopovers will have a lesser impact on the US economy, GS predicted.
Now that the federal government has failed to negotiate a new increase in the debt ceiling, the GDP of the world's largest economy is expected to fall by 0.2 percentage points for each week in which this event is in place, GS said.
The bank, however, is clearly not worried that this will last too long, or that the damage to the economy will be excessive, predicting a minimal impact on growth for the whole year.


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