Goldman Sachs cut its outlook for US economic growth for next year, citing risks and uncertainty around the Omicron variant of the coronavirus
Omicron poses 3 major threats to the US economy, says Jerome PowellGoldman economist Joseph Briggs said in a note that the Omicron variant could slow economic reopening, but the firm expects"only a modest drag" on service spending.The firm now sees 2022 gross domestic product growth of 3.8%, down from 4.2% previously on a full year basis, and Q4/Q4 growth of 2.9%, down from 3.3% before, Briggs said.
Worker shortages could last longer if people do not feel comfortable returning to work due to the variant, according to the note.Read MoreHere's how Omicron could make the supply chain mess worseGoldman pointed the spread of the virus could worsen supply shortages should other countries implement tighter restrictions, but increase in vaccination rates among foreign trade partners would prevent severe disruptions.Goldman Sachs' U.S.
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