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Goldman Cuts U.S. GDP Forecast With Omicron a Drag on Growth

  • Forecast for 2021 reduced to 3.8% from 4.2%, 2022 cut to 2.9%
  • Omicron ‘modest downside’ on GDP; mixed effect on inflation
Covid-19 pop-up testing sits in Manhattan street in New York City. 

Covid-19 pop-up testing sits in Manhattan street in New York City. 

Photographer: Spencer Platt/Getty Images

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Goldman Sachs Group Inc. economists cut their forecasts for the U.S. economy this year and next after deciding the spread of the omicron strain of the coronavirus would exert a “modest downside” drag on growth.