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<Research>G Sachs Forecasts Global Econ Growth of 2.8% Next Yr, Expects Fed to Cut Rates by 50 Bps
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Goldman Sachs anticipated sturdy global economic growth of 2.8% in 2026, surpassing the market expectation of 2.5%. Of which, the US economy is expected to grow by 2.6%, driven by reduced tariff burdens, tax cuts and a more accommodative financial environment. China's economy is projected to remain resilient, with a YoY growth of 4.8%, as strong export performance will offset weak domestic demand. Despite long-term challenges, the broker remained relatively optimistic about the EUR zone, and forecasted economic growth of 1.3%, mainly supported by fiscal stimulus in Germany and robust growth in Spain. In terms of interest rates, Goldman Sachs estimated the US Fed to cut rates by 50 bps to 3-3.25%, and saw dovish risks. The broker predicted rate cuts in the UK and many emerging markets, particularly Brazil and the CEEMEA, with the UK potentially cutting rates by 75 bps. As for the EUR zone, Goldman Sachs estimated interest rates to remain unchanged, and disagreed with market pricing shift towards rate hikes in Canada and Australia. AASTOCKS Financial News Website: www.aastocks.com |
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