- The u.s. economy is still on track for a V-shaped recovery at least until 2020, said Wednesday the CEO of Goldman Sachs, David Solomon.
- The nation is “somewhere in the middle” of its bounce, and its re-openers should provide a significant boost to economic activity, he said during the Bloomberg Invest Global virtual conference.
- Yet, while the rebound in V-shape ends in the course of the next year, “the type of friction in economic as we will see during the end of the year and up to 2021 is very open,” added the director general.
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The CEO of Goldman Sachs, David, Solomon still sees a recovery in the shape of a V to come, even if the cases of coronavirus increase in the United States.
This might not bring the economy back to its levels before the pandemic as quickly as expected.
Appearing in the Bloomberg Invest Global virtual conference, Solomon said that the United States was “somewhere in the middle” of their turnaround. As economic activity declined in the second quarter, the CEO sees re-openings lead to a similar turn higher until the end of the year.
“This crisis has had a profound impact on the economic environment in which we operate “, he said on Wednesday. “I guess when you look at the shape of the recovery, the original shape will look like a V. ”
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Solomon added that the uncertainty obscures such forecasts and that of the latter shock might endanger the longer-term trajectory of the country. The health care industry represents a major variable, because an effective vaccine against the coronavirus that is widely regarded as the best bet to strengthen the confidence of consumers. Human behavior may also deviate from expectations, and speed up, or stop the measures of re-opening.
These factors will slow down probably the rebound of the u.s. economy after 2020, and will push a rebound in full further, said Solomon.
“I think we’re going to see a V sharp to begin with, but it is very unlimited as to the type of friction economic that we will see at the end of the year and until 2021,” said the CEO.
“I think it’s going to take some time for us to get back to where we were before it begins ”
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