‘Elections Have Consequences’: Goldman Sachs Makes 6 Big Predictions For The Economy This Year

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Topline Backed by a Democrat-controlled congress, President-elect Joe Biden is expected to prioritize a broad-based stimulus package once he takes office on January 20, a development that should help spur better-than-expected GDP growth and booming stock-market returns this year, Goldman Sachs analysts say, but that growth could moderate once Democrats' likely tax increases go into effect next year. The labor market could be in for a strong recovery thanks to increased stimulus, but inflation is a ... [+] different story. Getty Images Key Facts Headlining the investment bank's expectations is another round of fiscal stimulus totaling roughly $750 billion, including $300 billion in stimulus checks, $250 billion in relief for state and local governments and $150 billion in extended unemployment benefits.

The additional relief should help lift gross domestic product growth for the year to about 6.4%, more than the estimated 3.6% contraction last year and up from previous expectations of 5.9% growth, Goldman analysts said in a note to clients Sunday.  The faster-than-anticipated GDP growth will help the unemployment rate, which remained flat ...read more...