Goldman cuts fourth-quarter and first-quarter GDP forecasts on coronavirus ‘resurgence’

A shopper wearing a face mask browses merchandise beside bare shelves due to the coronavirus disease (COVID-19) pandemic at a Target store in King of Prussia, Pennsylvania U.S. November 20, 2020.

Mark Makela | Reuters

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Goldman Sachs slashed its economic outlook for the current quarter and first quarter of 2021 as the U.S. grapples with a new wave of Covid-19 infections and fresh lockdown restrictions.

“The rapid and broad-based resurgence of the coronavirus has led us to downgrade our Q4 and Q1 GDP forecasts,” Jan Hatzius, Goldman’s chief U.S. economist, said in a note. “The pace of recovery would likely slow in the winter months, with a lack of fiscal support and a deteriorating virus situation pointing to significant downside risks.”

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