Goldman Sachs (GS) has increased its projection for the likelihood of a US recession after cutting its GDP forecast, Yahoo News reported.

On Thursday, Jan Hatzius, the chief economist at Goldman Sachs (GS), raised the probability of a US recession in the next 12 months from 25% to 35%. He attributed the increase to “increased near-term uncertainty” regarding the economic impact of stress on smaller banks.

On Wednesday, Goldman Sachs’ chief economist, Jan Hatzius, released a note reducing his 2023 GDP forecast by 0.3 percentage points to 1.2%, as reported by Yahoo News.

At present, the prominent economist remains the only one on Wall Street to lower the GDP projections, while simultaneously increasing the likelihood of a recession amidst the ongoing banking crisis.

Written by staff