Goldman Sachs cuts US growth forecast amid high oil prices

Goldman Sachs analysts warned that the US would face a recession next year at 35% and downgraded their growth forecasts for 2021, due to high oil prices and repercussions of the Russia-Ukraine war.

In a note, the analysts cut their annualized growth forecast to 2.9% against a previous expectation of 3.1%. They also expect the fourth-quarter real gross domestic product (GDP) growth of 1.75% against a previous forecast of 2%.

Furthermore, the analysts said there are additional downside risks if shortages of key metals constrain US production.