Goldman Sachs Downgrades U.S. Economy’s Outlook due to Coronavirus

Goldman Sachs Downgrades U.S. Economy’s Outlook due to Coronavirus

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On Sunday, the leading rating agency Goldman Sachs downgraded its future outlook for the US economy due to the coronavirus threat. The virus has heavily stressed the economy, and despite the various coping measures carried out by the Feds, the growth of the US economy is expected to be nil as per the said agency for the first two quarters of 2020.

Chief Economist of Goldman, Jan Hatzius said in a note to clients on Sunday  “We expect US economic activity to contract sharply in the remainder of March and throughout April as virus fears lead consumers and businesses to continue to cut back on spending such as travel, entertainment, and restaurant meals.”

The fear of the coronavirus is refusing to shrink down, as, despite continuous researches, the vaccinations for this virus have not been found yet. The virus has infected over 156,000 people over the world, including over 5000 deaths. The virus has also spread in all the continents of the earth except Antarctica.

Due to this, the market has been seeing red as the investors fear a worldwide recession. The US feds have taken measures to cushion the market in the form of interest rate cuts and other policies, but it seems the effects of the virus will be nullified only when vaccination is found.

“Even with monetary and fiscal policy turning sharply further toward stimulus … these shutdowns and rising public anxiety about the virus are likely to lead to a sharp deterioration in economic activity in the rest of March and throughout April,” Hatzius added on Sunday.