Goldman Sachs is cutting its forecast for economic growth in 2021 and 2022.
Economists say they're revising their estimates after last week's weaker than expected jobs report. The new forecast for GDP expansion is 5.6% this year (2021), down from the previous estimate of 5.7% growth. 2022 is now expected to be 4%, down from 4.3% percent. Goldman notes a delayed in recovery in consumer spending.
Vlad Davidiuk, a Republican strategist, says a sluggish economic recovery doesn't bode well for Democrats in the upcoming midterms.
“What’s happening is we’re seeing a gradual decline in every single state in terms of growth, opportunity, and prosperity for the citizens of America,” Davidiuk said. “All of this bodes very, very well for Republicans taking control of both houses of Congress.”
He also says inflation under the Biden administration could make it difficult for Democrats.
“People will start voting in primaries in the upcoming spring and early summer. There’s not a whole lot of time between now and then for either a course correction or fixes to a lot of the problems,” Davidiuk explained.