Goldman Sachs Bullish on US Economy

Here’s where a $40 billion trade deficit comes in handy.

Because the U.S. has such a sharp imbalance between what it imports and exports, expected global weakness ahead likely won’t have a severe effect on domestic economic growth, according to a report this week from Goldman Sachs economists.

In fact, Goldman held firm to its forecast that the U.S. will significantly outperform much of the developed and emerging world—a 3 percent rise in gross domestic product for 2015 against an expected gain of just one percent or so for Japan and the euro zone. Goldman has cut its forecast for non-U.S. growth by half a percentage point but is holding fast to its expectations for the U.S. itself in the longer term even though it recently reduced its third-quarter GDP outlook.

“At a time when domestic growth drivers are clearly picking up, we see several reasons for optimism,” Goldman economists Jan Hatzius and David Mericle said in a report for clients.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza