Omicron fears drag down US growth forecast

Must read

Sen. Hawley Introduces Bill To Allow States To Deport Illegal Immigrants

Already this fiscal year, the U.S. has seen record-breaking numbers of illegal immigrants crossing the border. So far,...

MSNBC’s Joy Reid Compares Floridians Evacuating Hurricane Ian to Illegal Immigrants: ‘Ironic That They Have to Pour Over the Borders and Go North’

MSNBC host Joy Reid belittled Floridians trying to escape Hurricane Ian, comparing them to illegal immigrants and suggesting...

What Happens When a Fact-Checker Doesn’t Get the Facts Right?

By Chandler Lasch for RealClearReligion Georgia Democratic gubernatorial candidate Stacey Abrams recently came under fire for...

Trump Has Seen Enough: Offers to Negotiate Peace Deal Between Russia, Ukraine

Former President Donald Trump advised leaders on how to deal with ongoing events in the Russia-Ukraine war, even...

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

Sen. Hawley Introduces Bill To Allow States To Deport Illegal Immigrants

Already this fiscal year, the U.S. has seen record-breaking numbers of illegal immigrants crossing the border. So far,...

MSNBC’s Joy Reid Compares Floridians Evacuating Hurricane Ian to Illegal Immigrants: ‘Ironic That They Have to Pour Over the Borders and Go North’

MSNBC host Joy Reid belittled Floridians trying to escape Hurricane Ian, comparing them to illegal immigrants and suggesting...

What Happens When a Fact-Checker Doesn’t Get the Facts Right?

By Chandler Lasch for RealClearReligion Georgia Democratic gubernatorial candidate Stacey Abrams recently came under fire for...

Trump Has Seen Enough: Offers to Negotiate Peace Deal Between Russia, Ukraine

Former President Donald Trump advised leaders on how to deal with ongoing events in the Russia-Ukraine war, even...