Goldman Sachs Predicts US GDP Growth Rate of 4.5~6.8% This Year

President Joe Biden of the United States [Image source= EPA Yonhap News]

[Asia Economy Reporter Byunghee Park] Goldman Sachs has revised upward its forecast for the U.S. economic growth rate this year. This is due to the expectation that the size of U.S. President Joe Biden's stimulus package will be larger than initially anticipated.

In a report released on the 9th, Goldman Sachs' Chief Economist Jan Hatzius stated, "The additional stimulus package from the Biden administration is expected to increase from the previously estimated $1.1 trillion to $1.5 trillion," adding, "We are raising our forecast for this year's U.S. Gross Domestic Product (GDP) growth rate by 0.2 percentage points."

Chief Economist Hatzius further projected that the U.S. GDP growth rate for this year will be between 4.5% and 6.8%. He especially forecasted that the GDP growth rate for the second quarter of this year will reach 11%.

Hatzius said, "The additional $40 billion fiscal injection corresponds to about 2% of GDP," and added, "It will be spent over the next several quarters and will have a limited effect on short-term economic growth rates."