Goldman Sachs sees lower US GDP growth in 2022 on worries Omicron could threaten recovery

Goldman Sachs sees lower US GDP growth in 2022 on worries Omicron could threaten recovery

Has cut its outlook for US economic growth in 2022, pointing to risks and uncertainty posed by the . The bank now expects US gross domestic product growth to expand by 3.8% next year, lower than its prior annual estimate of 4.2%, and Q421/Q422 growth of 2.9%, down from 3.3%. "While many questions remain unanswered, we now think a moderate downside scenario where the virus spreads more quickly but immunity against severe disease is only slightly weakened is most likely," Goldman economist Joseph Briggs said in a note published Sunday. Omicron could interfere with the reopening, but only a "modest drag" on service spending is likely as virus-control policies and economic activity have become less sensitive to the spread of COVID-19, the note said. The Omicron variant, in South Africa and Botswana in early November, has now spread to . But US medical adviser Anthony Fauci on Sunday "it does not look like there's a great degree of severity" to the variant. But Omicron could worsen the if its spread in other countries warrants tightening of restrictions, according to Goldman's note. "This was a major problem during the Delta wave, but increases in vaccination rates in foreign trade partners since