Goldman Sachs Cuts US GDP Forecast Amid Banking Crisis
(21 March 2023 – United States) Goldman Sachs lowered its forecast for Q4 US gross domestic product (GDP) growth, citing risks to the lending environment as smaller banks pull back on loans to preserve liquidity in the face of a financial markets crisis.
Analysts at the firm now expect year-on-year (YOY) growth of 1.2 percent for the quarter, down 0.3 percentage points from their previous estimate. Regional banks in the US have been in troubled waters since Silicon Valley Bank was shuttered by regulators after a bank run the previous week.
“Stress at some banks persists despite federal agencies having acted aggressively to bolster the financial system” Goldman Sachs analysts said.