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FinanceGoldman Sachs nudges U.S. growth forecast higher on Biden stimulus plan

Reuters
2 minutes read

U.S. President-elect Joe Biden delivers remarks as Vice President-elect Kamala Harris looks on during a televised speech on the current economic and health crises at The Queen Theatre in Wilmington, Delaware, U.S., January 14, 2021. REUTERS/Tom Brenner

Analysts at Goldman Sachs Group (GS.N) raised their U.S. 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 $1.1 trillion from $750 billion.

Biden outlined a $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. read more

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

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