Economics
Goldman Says Stocks May Drag on U.S. Growth
- GDP boost from higher equity prices may have disappeared
- Sharp market moves seen by firm as risk to its forecasts
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Equities have helped drive U.S. economic growth as the market surged, but that’s likely to reverse soon, according to a forecast by Goldman Sachs Group Inc.
“The stock market is likely to turn from a significant contributor to strong growth at the start of the year into a modest drag next year, barring a further rebound in equity prices,” Goldman Sachs economists including Daan Struyven and Jan Hatzius wrote in a note Friday. “We estimate that the 0.5 percentage point boost to GDP growth from higher equity prices at the start of the year has already disappeared.”