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2/24, 5:09 PM (Source: TeleTrader)
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Goldman trims 0.2 pp off Q1 GDP growth over coronavirus

The Goldman Sachs Group Inc. said on Monday it cut the United States’ GDP growth forecast for the first quarter of 2020 by 0.2 percentage points to 1.2%, citing a worsening situation with the coronavirus outbreak and higher inflation.

The leading global investment banking firm asserted that the global risk remains high due to the continuous spread of the virus, which would affect several areas in the United States such as, a decline in US retailers’ services, a reduced US goods export to China, as well as a drop in US production due to ''supply chain production disruptions.''

As for the growth on a yearly level, Goldman Sachs expects GDP growth will drop by 0.1 percentage points, while risks remain on the table until the virus outbreak is contained.

Breaking the News / BJ