Goldman Sachs – Will inflation be the silent thief? | Business
Consider the parties you didn’t have this holiday season as merely postponed. So advise the economists at Goldman Sachs. They reckon economic growth will accelerate in the second quarter of this new year as “mass immunisation greatly reduces the virus threat, unleashing a spending boom in the high-contact consumer services sector”. The bank’s contribution to holiday cheer includes economic growth at 5.9%, a drop in the unemployment rate from 6.7% to 5.2%, and inflation remaining below 2%. Other forecasters are pithier: we are headed into the roaring 2020s — rather like the 1920s, although with farmers doing somewhat better now than then.
There seems to be broad agreement with this cheery prognosis, with one caveat: “Inflation is the hottest new investor concern,” topped only by