Goldman Sachs Lowers U.S. Growth Forecast for This Year from 2.4% to 1.7%, Considering Tariff Impact

# Goldman Sachs Slashes U.S. Growth Forecast for 2025 to 1.7% Goldman Sachs, the major U.S. investment bank, has significantly revised its forecast for U.S. economic growth in 2025 down to 1.7% from the previous estimate of 2.4%, CNBC reported on October 10. According to the report, Jan Hatzius, the chief economist at Goldman Sachs, indicated in a memo sent to clients that the firm’s assumptions regarding trade policy have become markedly more pessimistic. The administration, he noted, is managing expectations around the short-term economic softness induced by tariffs. Goldman Sachs highlighted that the U.S.’s more aggressive tariff policies than initially expected could delay corporate investments, while also triggering inflationary pressures and tightening financial conditions. The firm projected that the tariff policies of the potential second term of President Trump's administration could increase the average U.S. tariff rate by 10 percentage points. CNBC noted that this is double the increase anticipated in previous forecasts. The downward revision by Goldman Sachs came just one day after President Donald Trump, in an interview with Fox News, refrained from explicitly denying the possibility of a recession this year and referred to a "transition". pan@yna.co.kr