Joe Biden’s economy has been dealt another blow as Goldman Sachs has downgraded its economic forecast.
According to The Washington Free Beacon:
The economists in a Sunday note to clients blamed the downgrade on “a longer-lasting virus drag on virus-sensitive consumer services spending,” a decreased financial stimulus, and a shortage in semiconductors, MarketWatch reported.
China, which has recently threatened Taiwan and the United States, has significant control over the global semiconductor industry.
The forecast predicts economic growth of 5.6 percent in 2021, down from 5.7 percent, and 4 percent growth in 2022, down from 4.4 percent. The economists have upgraded their 2023 and 2024 forecasts, however, which they say offset the downturn.
The Goldman forecast is only the latest piece of troubling economic news for the Biden administration, which already faces an inflation spike, the highest gas prices in six years, and the worst unemployment numbers in a year.
It is unlikely to reach pre-pandemic levels in 2022 according to the firm.