Omicron fears drag down US growth forecast

Must read

GOP Establishment Sweating Over Come-From-Behind PA Senate Candidate Kathy Barnette

Once again, Establishment and seemingly well-heeled Republicans are doing everything they can to try to control the primary...

Congress To Hold Open Hearing On UFOs – Will Public Hearings Make A Difference?

Next Tuesday, the House Intelligence Committee’s subcommittee will hold an open hearing regarding the Pentagon’s work on identifying...

‘Squad’ Member Cori Bush Wants to Know Why There Isn’t Any ‘Sperm Regulation Legislation’ For Men

Far-left Representative Cori Bush made an attempt to equate abortion restrictions to something similar for men, openly wondering...

‘MAGA Marjorie’ Taylor Greene Slams Dan Crenshaw For Funding Ukraine While Americans Struggle

Marjorie Taylor Greene hammered neoconservative Republican Rep. Dan Crenshaw over his vote to provide $40 billion in aid...

Goldman Sachs has downgraded its US economic growth forecast for 2022 from a previously expected 4.2% to 3.8%. The outlook was cut due to rising risks and uncertainty around the new Covid-19 variant, Omicron.

According to Goldman economist Joseph Briggs, who was cited by Reuters, the new coronavirus strain could slow the US’ economic reopening, but is expected to have “only a modest drag” on service spending.

“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,” Briggs said in a note on Saturday. He added that labor shortages could last longer if people do not feel comfortable returning to work due to Omicron.

READ MORE: US on the brink of default, think tank predicts

The spread of the virus could worsen supply shortages if other countries implement tighter restrictions, according to Goldman. However, the increase in vaccination rates among foreign trade partners could prevent severe disruptions, the report said.

For more stories on economy & finance visit RT’s business section

More articles

Latest article

GOP Establishment Sweating Over Come-From-Behind PA Senate Candidate Kathy Barnette

Once again, Establishment and seemingly well-heeled Republicans are doing everything they can to try to control the primary...

Congress To Hold Open Hearing On UFOs – Will Public Hearings Make A Difference?

Next Tuesday, the House Intelligence Committee’s subcommittee will hold an open hearing regarding the Pentagon’s work on identifying...

‘Squad’ Member Cori Bush Wants to Know Why There Isn’t Any ‘Sperm Regulation Legislation’ For Men

Far-left Representative Cori Bush made an attempt to equate abortion restrictions to something similar for men, openly wondering...

‘MAGA Marjorie’ Taylor Greene Slams Dan Crenshaw For Funding Ukraine While Americans Struggle

Marjorie Taylor Greene hammered neoconservative Republican Rep. Dan Crenshaw over his vote to provide $40 billion in aid...