Goldman: Don't Expect Any Economic Miracles In 2011

Love them or hate them, one thing is true – Goldman Sachs has some damn smart analysts. Those analysts see much weaker growth than the rest of the street in 2011. Currently, they’re calling for 1.5%-2% GDP growth in H1 with an average unemployment rate of 10% throughout the entirety of 2011:

“Our US Economics team expects GDP will grow at a 1½%-2% rate through the middle of next year and the unemployment rate will rise to 10% (see Exhibits 12 and 13). The reason is that “short-cycle” factors such as the inventory cycle and the impulse from fiscal policy are likely to continue deteriorating through early 2011, keeping GDP growth very sluggish.”

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Source: Goldman Sachs

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