Reuters / Shannon Stapleton
- The U.S. economy is still on track for a V-shaped recovery until at least 2020, Goldman Sachs CEO David Solomon said Wednesday.
- The nation is “somewhere in the middle” of its rebound and reopens are slated to dramatically boost economic activity, it said during the Bloomberg Invest Global virtual conference.
- However, as the V-shaped bounce ends sometime next year, “it is very open as to what kind of economic friction we will see as we move through the end of the year and into 2021,” added the chief executive. .
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Goldman Sachs CEO David Solomon still sees a V-shaped recovery ahead, even as coronavirus cases increase in the United States.
It may not return the economy to its pre-pandemic levels as quickly as expected.
Appearing at the Bloomberg Invest Global virtual conference, Solomon said the United States is “somewhere in the middle” of its change. Just as economic activity plummeted in the second quarter, the CEO sees the reopens driving a similar upward turn at the end of the year.
“This crisis has had a profound impact on the economic environment in which we are operating,” he said on Wednesday. “I guess when you look at the recovery form, the initial form will look quite like a V.”
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Solomon added that uncertainty still clouds such forecasts and that the second crashes could jeopardize the nation’s long-term trajectory. The healthcare industry represents an important variable, as an effective coronavirus vaccine is widely viewed as the best bet for increasing consumer confidence. Human behavior can also deviate from expectations and accelerate or stop reopening measures.
These factors are likely to delay the US economic rebound. USA After 2020 and they’ll push a full rebound later, Solomon said.
“I think we are going to see a strong V to start with, but it is very open about what kind of economic friction we are going to see as we move forward at the end of the year and in 2021.” said the CEO.
“I think it will take us a long time to get back to where we were before this started.”
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