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Goldman Sachs raises U.S. GDP forecast for 2021

Christian Fernsby |
Goldman Sachs revised up U.S. economic growth forecast by 0.5 percentage points for 2021, as the Democratic blue wave makes it more likely to see a larger stimulus package adopted in the first quarter of the year.

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Topics: GOLDMAN SACHS    U.S.   

The U.S.' GDP is now expected to grow by 6.4% this year, up from the previous estimate of 5.9%, the American multinational investment bank and financial services company said in a report Thursday.

After Democrats have won the two Senate seats in Georgia runoff elections on Wednesday, giving them the control of the Congress, and Joe Biden winning the White House on Nov. 3 elections, they are "likely to pass further fiscal stimulus in the first quarter," the report said.

Goldman Sachs said it expects a relief package of around $750 billion, which would include $300 billion in stimulus checks for jobless Americans.

The investment firm also forecasts the U.S. unemployment rate decreasing to 4.8% at the end of this year, to 4.3% at the end of 2022, and later to 3.9% and 3.6% for the end of 2023 and 2024, respectively.

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