January 31, 2020 / 7:50 AM / a month ago

Goldman Sachs says virus outbreak to hit U.S. and China growth

FILE PHOTO: A Goldman Sachs sign is seen above the floor of the New York Stock Exchange shortly after the opening bell in the Manhattan borough of New York January 24, 2014. REUTERS/Lucas Jackson

LONDON (Reuters) - The coronavirus outbreak is likely to hit China’s economic growth by 0.4 percentage point in 2020 and will potentially drag the U.S. economy lower as well, due to lower tourism and exports, investment bank Goldman Sachs said on Friday.

The bank estimates a 0.4 percentage-point hit to the U.S. economy in the first quarter, but said growth would likely rebound in the following quarter “leaving only a small net drag on U.S. full-year 2020 growth”.

Goldman Sachs revised down China’s 2020 GDP growth expectations to 5.5% from 5.9%.

Reporting by Thyagaraju Adinarayan; editing by Sujata Rao

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