(Reuters) – Analysts at Goldman Sachs Group have lifted their growth forecast in the U.S. for the second time this month in anticipation of President Joe Biden’s fiscal stimulus plan accelerating the country’s recovery economy from COVID-19 pandemics.
The bank expects economic growth of 6.6% in 2021, compared to a previous forecast of 6.4%, according to a report released Saturday. It also raised forecasts on the level of incentive the new administration will soon be able to push through, to $ 1.1 trillion from $ 750 billion.
Biden outlined a $ 1.9 trillion stimulus package proposal on Thursday, saying bold investment was needed to kick-start the economy and accelerate the circulation of vaccines to bring the coronavirus under control.
“A greater increase in disposable income and government spending means stronger growth later in the year,” the bank’s analysts wrote.
Reciting with Ira Iosebashvili; Edited by Dan Grebler