Analysts at Goldman Sachs are predicting that the $1.9 trillion American Rescue Plan President Biden signed into law last week will help spur eye-popping economic growth this year.
“We have raised our GDP forecast to reflect the latest fiscal policy news and now expect 8% growth in 2021 (Q4/Q4) and an unemployment rate of 4% at end-2021 — the lowest among consensus forecasts — that falls to 3.5% in 2022 and 3.2% in 2023,” Goldman economists said in a note Sunday, according to Axios.
While Goldman’s outlook may be the most bullish on Wall Street, many analysts agree that the U.S. will see growth unlike any in many years. “The US economy is going to once again become the global locomotive,” Gregory Daco, chief US economist at Oxford Economics, said. Daco, who expects the U.S. economy to grow at a rate of 7% this year, added that the extraordinary expansion “will help pull the rest of the world out of this Covid crisis.”