US GDP to mark above-consensus full-year growth of 7% in 2021 – Goldman Sachs

In its latest forecast report, Goldman Sachs sounds upbeat for the US economy as it revised up the previous US GDP 2021 forecast from 6.8% to 7.0%. It should be noted that the real GDP rate is expected to jump to 8.0% YoY, per the update.

In doing so, the US bank also expects that 50% of the US population gets vaccinated by May. The bank’s extra assumptions were a policy mix of smaller government fiscal deficits. slower credit growth and relatively tight housing policies should limit the pace of growth.

Additional economic projections from the bank suggest the unemployment rate fall to 4.1% and core PCE inflation to rise to 1.85% by year-end 2021.

In a separate report, Goldman Sachs also signaled that the Japanese yen, Swiss franc and Taiwanese dollar are rate resistant compared with the rising yield in the US.