Goldman Sachs Sees 10% Unemployment in 2010

The financial company's economics team has revised its outlook downward.


The economics team at Goldman Sachs has revised its economic outlook lower, again:

We have marked down our forecast for US economic activity in the first half of 2009; we now expect real GDP to fall at annual rates of 7% this quarter and 3% next quarter (versus declines of 4½% and 1% previously)…

As a result of the additional near-term weakness, we have boosted our expected path of the unemployment rate, to 9½% by year-end 2009 and 10% by year-end 2010; both figures are ½ point above the previous forecast.