Shortly after today’s ugly employment report, Goldman Sachs has changed its economic forecast. It now expects a deeper recession and higher unemployment.
From a report by economists at Goldman Sachs:
BOTTOM LINE: We have marked down our near-term forecasts for real GDP – to annualized declines of 3½% and 2% in the fourth and first quarters, respectively – and we have added another 50 basis points of Fed easing by year-end. These changes reflect the accumulation of evidence that US domestic demand and production continue to fall sharply. As a result, we now expect the unemployment rate to reach 8½% by year-end 2009. We continue to assume enactment of a $200 billion (bn) package of fiscal stimulus early next year; although prospects of a larger package are rising, we prefer to wait until its timing and outlines become clearer before incorporating it into our outlook.
Reader Comments Read all comments (2)
daniel morris of NY 5:23PM November 07, 2008
Dr. Dhanayshar Mahabir(Economist) 12:38PM November 07, 2008