Goldman Sachs has revised down its growth projection for 2023, with a reduction of 0.3 percentage points to a forecast of 1.2%. This is measured from the fourth quarter of 2022 to the fourth quarter of 2023.
Goldman Sachs revised down its prediction for Q4 GDP growth in the United States on Wednesday. The reason for this is the potential risks to the lending industry as smaller banks may reduce their loans to ensure they have enough liquidity during a banking crisis.
The analysts at the company have revised their estimate for year-on-year growth for the quarter, lowering it by 0.3 percentage points to 1.2%.
Since regulators closed SVB Financial Group (SIVB.O) following a bank run last week, regional banks in the United States have been experiencing a tumultuous journey.
There are concerns that the swift collapse of the startup lender could lead to other lenders experiencing bank runs, as they may struggle to gather enough funds to fulfill deposit withdrawal requests.
Despite the aggressive actions taken by federal agencies to strengthen the financial system, Goldman Sachs has stated that stress still persists at certain banks.