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2/3, 5:25 PM (Source: TeleTrader)
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Goldman Sachs: 2020 growth depends on coronavirus

Global growth in 2020 depends on the way the coronavirus outbreak is handled, Goldman Sachs chief economist, Jan Hatzius, said on Monday. He added that, in the near-term, the outbreak will play a "quite large" role in economic growth.

Hatzius added that Goldman Sachs now sees global gross domestic product (GDP) rising 3.25% in 2020 which would be a minimal increase from last year's 3.1%. The new projection is between 0.1 and 0.2 points lower than GDP expectations for this year prior to the coronavirus outbreak and assumes China will sustain the outbreak in the next couple of months. If Chinese efforts are unsuccessful, the impact on GDP could be as high as 0.3 percentage points, the Goldman Sachs economist stated.

China will be most impacted by the virus, according to Goldman Sachs as the bank sees the country's GDP decelerating to 5.5% in 2020, which compares to 6.1% growth in the previous year.

Breaking the News / VP