The Congressional Budget Office expects federal debt to reach 102% of US GDP in 2021. The estimate doesn’t account for the $US1.9 trillion stimulus plan Democrats are set to pass. The CBO sees the debt pile then shrinking for a few years before rising into the next decade. Visit the […]

US gross domestic product grew at an annualized rate of 4% in the fourth quarter, the Commerce Department said Thursday. Economists surveyed by Bloomberg expected growth to come in at 4.2%. The gains come after economic reopening drove a record-high growth rate of 33.1% in the third quarter. While the […]

Goldman Sachs raised its US GDP forecast to 6.6% on Joe Biden’s $US1.9 trillion stimulus plan. Bank economists now project a lower US unemployment rate of 4.5%, down from 4.8%. Biden’s $US1,400 stimulus checks will cause a “large spike” in disposable income, they said. Visit Business Insider’s homepage for more […]

Spiking COVID-19 cases and slowing economic activity have led Goldman Sachs to cut its near-term growth forecasts. Economists led by Jan Hatzius predicted that US gross domestic product would grow by 3.5% in the fourth quarter, down from a forecast of 4.5%. The bank also lowered its first-quarter 2021 growth […]

Goldman Sachs updated its US gross domestic product outlook on Saturday, factoring in rising COVID-19 cases, a Biden presidency, and coronavirus vaccine updates. US GDP will grow 3.5% in the first quarter of 2021, the team led by Jan Hatzius said, citing fallout from record-high case counts. That’s half of […]

US equities climbed higher on Thursday as rallying tech stocks and encouraging economic data reversed some of Wednesday’s plunge. Apple,Amazon,Facebook, and Alphabet led gains ahead of the companies’ third-quarter reports. US GDP grew at a record 33.1% annualized rate in the third quarter, the Commerce Department said Thursday. The reading […]

Tom Lee of Fundstrat Global Advisors told CNBC on Wednesday that investors should stay in “epicentre stocks” that have been hit hardest by the pandemic despite the recent market downturn. “It’s a very tough spot, and we’ve been sticking with these things and it’s been really painful, but I still […]

US equities slid on Thursday, even as economic data pointed to a stronger-than-expected pace of recovery. The US economy grew at a record 33.1% annualized rate in the third quarter, the Commerce Department said Thursday. The reading exceeded the 32% estimate from economists surveyed by Bloomberg. Weekly jobless claims fell […]

US gross domestic product grew at a record 33.1% annualized rate in the second quarter, the Commerce Department said on Thursday. The jump followed the second quarter’s 31.4% annualized slump and roughly doubled the next-biggest increase on record. Economists surveyed by Bloomberg had expected a 32% increase. The GDP reading […]

Morgan Stanley slashed its forecast for fourth quarter US GDP growth on Sunday to 3.5%. The firm’s previous estimate for the quarter was 9.3%. A team of economists said they do not expect a second stimulus package to be released by the end of this year. Morgan Stanley’s former 9.3% […]

JPMorgan is the latest Wall Street bank to slash its forecast for US economic growth because of weakened hopes for near-term stimulus. The bank on Thursday lowered its fourth-quarter 2020 estimate to 2.5% from 3.5% and cut its first-quarter 2021 growth forecast to 2% from 2.5%. The lack of fresh […]

The US can still reach “a form of ‘full recovery'” in 2020 if fourth-quarter growth exceeds expectations, James Bullard, president of the Federal Reserve Bank of St. Louis, said Thursday. Gross domestic product growth would need to reach 35% and 10.4% in the third and fourth quarters, respectively, he said […]

Goldman Sachs halved its outlook for fourth-quarter economic growth after changing its base case to include a lack of new stimulus until 2021. The bank’s economists lowered their gross domestic product forecast to 3% growth from 6% on a quarter-by-quarter basis in a Wednesday note. The lack of new fiscal […]

Economists at Bank of America lifted their forecast for third-quarter US GDP growth to 27% from 15% on Friday, citing better-than-expected trends in retail sales, the housing market, and hiring. Yet the firm lowered its fourth-quarter projection to 3% from 5%. Failed stimulus negotiations are growing increasingly likely, and the […]

Goldman Sachs is predicting US Q3 GDP to be 35% due to a better than expected August jobs report. The bank said in a note on Thursday: “We upgraded our near-term growth forecasts based on the much stronger-than-expected August jobs report and the solid summer data more generally.” The US […]

Goldman Sachs said in a note Thursday the S&P 500 can hit 3,600 if markets price in the bank’s “comparatively more optimistic US GDP forecast.” The bank’s strategists Dominic Wilson and Vickie Chang say if the economy contracts by only by 5% in 2020, and grows by 6.2% next year, […]

Goldman Sachs raised its 2021 US GDP forecast to 6.2% from 5.6%, driven by expectations that at least one COVID-19 vaccine will be “widely distributed” by the end of the second quarter next year. To reflect recent labour market data, the bank now projects US unemployment will fall to 6.5% […]

US gross domestic product (GDP) fell at a record 33% annualized rate in the second quarter, meaning the coronavirus pandemic has officially led to the worst GDP slump on record. Morgan Stanley predicts back-to-back records, with the third quarter likely to show the largest sequential GDP increase in American history […]

US stocks dropped on Thursday after economic data detailed the US’s biggest gross domestic product contraction on record. The country’s economy shrank at an annualized rate of 33% in the second quarter, the Commerce Department announced Thursday. Economists expected a contraction of roughly 35%. Jobless claims data pointed to lasting […]

US gross domestic product fell at a record 33% annualized rate in the first quarter, the Commerce Department said on Thursday. Economists had forecast a 35% GDP contraction, reflecting the months when many US states were locked down to contain the spread of the coronavirus. While activity picked up again […]

Christophe Barraud, chief economist of the broker-dealer Market Securities, has been ranked Bloomberg’s most accurate forecaster of US economic data eight years in a row. He told Business Insider that the US won’t return to its fourth quarter 2019 GDP of 2.1% until at least 2022, and for some European […]

A national mask mandate could potentially substitute for lockdowns to curb the spread of coronavirus, Goldman Sachs Chief Economist Jan Hatzius wrote in a Monday note. Goldman’s baseline estimate is that a national mandate could raise the percentage of people who wear masks by 15 percentage points and cut the […]

New coronavirus hotspots risk turning an initial V-shaped bounce into a W- or L-shaped economic slump, Bank of America said Tuesday. Optimistic labour market data and retail sales in May fuelled hopes for a quick recovery, but the reopenings that drove economic activity are now contributing to the pandemic’s rapid […]

The International Monetary Fund on Wednesday again slashed its forecast for the global economy, seeing a deeper recession and longer recovery from the shock of the coronavirus pandemic. The fund now expects global gross domestic product to contract 4.9% this year, down from its 3% forecast in April. It also […]

The Federal Reserve on Wednesday released projections for the US economy through 2022. It’s the first time the central bank has reported projections since the coronavirus pandemic began. The Fed expects the unemployment rate to remain elevated through the next few years, but eventually trend lower as the economy recovers. […]

The National Association for Business Economics’ June Outlook released Monday showed that 87% of economists surveyed said a second wave of COVID-19 is the top risk for the economy going forward. In addition, 80% of economists surveyed think that the balance of risks to economic growth in 2020 are weighed […]

The Congressional Budget Office on Monday lowered its projection for 2020-2030 US economic output, signalling it may take the US economy nearly a decade to recover from the coronavirus pandemic. The CBO now projects that over the 2020-2030 period, cumulative nominal output will be $US15.7 trillion less than it previously […]

US consumer spending slumped by 13.6% in April, the largest drop on record, the Commerce Department reported Friday. Economists surveyed by Bloomberg had expected a 12.8% decline. Meanwhile, the personal savings rate surged to a record 33% in April from 12.7% in March as people held on to cash. Incomes […]

US gross domestic product could slump by 42.8% in the second quarter, the Federal Reserve of Atlanta’s GDPNow forecasting model showed Friday. A week earlier, the model forecast a 34.9% slump during the period. In the last week, a slew of negative reports showed further damage to the US economy […]

US equities soared on Wednesday as traders gained new hope from a successful coronavirus drug trial. Gilead announced Wednesday morning its remdesivir compound succeeded in a key trial. Investors’ optimism toward the positive drug news overshadowed a 4.8% contraction in US GDP through the first quarter. Economists expected the metric […]

US equities soared on Wednesday as traders gained new hope from a successful coronavirus drug trial. Gilead announced Wednesday morning its remdesivir compound succeeded in a key trial. Additional information on the study will be released later in the day. Investors’ optimism toward the positive drug news overshadowed a 4.8% […]

US gross domestic product fell at a 4.8% annualized rate in the first quarter, according to Commerce Department figures released Wednesday. The report marks the official end to the US’s longest economic expansion, which started following the Great Recession. Now, economists are watching to see how bad second-quarter GDP will […]

A number of Wall Street firms have said they expect the US to fall into a recession from the shock of the coronavirus pandemic. The National Bureau of Economic Research defines a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, […]

Goldman Sachs on Friday dramatically cut its US economic forecast and is now expecting GDP will decline by 24% in the second quarter of 2020 due to the coronavirus pandemic. A drop of that size would set a new record – it would be nearly two-and-a-half times the largest drop […]

In a Monday note, a group of strategists at Morgan Stanley wrote that they are “cautiously optimistic” that the market will rebound from oversold conditions due to coronavirus panic. Still, the strategists don’t expect stocks to have the same momentum as they did before last week’s slide into correction territory. […]

Goldman Sachs lowered its US gross domestic product forecast for the first quarter to 1.2%, down from 1.4% previously, according to a client note on Monday. The forecast cut comes amid concern that the coronavirus will limit global growth and be a negative demand on US supply and demand. Still, […]

Coronavirus has infected 64,000 and killed 1,380 so far. And as the health crisis worsens, it’s become increasingly clear that the outbreak will have wide-reaching economic consequences. China’s economy is forecast to grow by the smallest margin since the Great Recession – news that will hit its embattled and vulernable […]

Goldman Sachs says we may be measuring the economy all wrong, and that up to $US233 billion has gone “missing.” “The most likely explanation is measurement error, which can be particularly high in industries where the universe of products or the firms that provide them is rapidly evolving,” the report […]

A Bloomberg survey of 30 prominent economists suggests that the negative economic impact of the government shutdown is likely around half of the White House’s official estimate. On average, economists forecast that first quarter growth will drop 0.32 percentage points from pre-shutdown growth estimates. At the extremes of Bloomberg’s survey, […]

Seth Carpenter, the most senior US economist at UBS, says the trade war is already having a negative impact on the US economy. UBS expects that tariffs will halve the speed of gross-domestic-product growth in the world’s largest economy this quarter. They will also lead to the collapse of many […]

New economic data puts the California economy at $US2.747 trillion – bigger than most nations. The ranking puts in fifth in the world, just ahead of the United Kingdom, which is on $US2.625 trillion. The difference is striking given California’s population of 40 million to the UK’s 66 million. California’s […]

On Tuesday, Attorney General Jeff...