Goldman Sachs predicts slower GDP growth in the US due to coronavirus

Photo: Liu Jie/Xinhua

Moscow, January 31 – “News.Economy.” According to experts of American investment Bank, the US GDP growth in the early years will be significantly lower than previously expected due to limitations in tourism and exports as a result of the outbreak of coronavirus.

the Chief economist of Goldman Sachs Jan Hatzius said that the pace of US GDP growth in the first quarter of 2020 will be 0.4% lower compared to previous forecasts. Prior to that, Goldman Sachs announced that in the first quarter, the growth rate of the U.S. economy will be 2%.

the Main factors that will lead to a slower growth of the U.S. economy, according to Goldman Sachs, will be the reduction of tourism from China to the United States and the decline in exports of American goods to China.

the investment Bank said that the tourist flow from China to the US fell by almost 50% during outbreaks of the SARS virus in 2002 and 2003 in comparison with these periods in the share costs of Chinese tourists in the United States, and the share of U.S. exports to China in U.S. GDP has increased significantly – currently, according to the latest estimates, these factors are responsible for 0.16% and 0.6% of GDP, respectively.

In General, for 2020, according to Goldman Sachs, because of the situation around coronavirus US GDP will lose about 0.05%. The experts warned that the final negative effect may be more pronounced if in place of a more serious outbreak of the viral infection, which can lead to more serious consequences for the American economy in terms of reduction of transport activity, domestic tourism and consumption. Text: News.Economy