Goldman Sachs has revised its forecast for the likelihood of a U.S. recession in the next 12 months, lowering it from 30% to 25%. This adjustment comes as U.S. economic indicators show resilience, with April's non-farm payrolls adding 115,000 jobs, surpassing the expected 65,000, and the unemployment rate remaining at 4.3%.
Despite geopolitical tensions in Iran, international oil prices have remained stable, contributing to a favorable economic outlook. Additionally, private domestic sales increased by 2.5% year-over-year in the first quarter, underscoring strong domestic demand. The Goldman Sachs Financial Conditions Index has also eased to pre-war levels, indicating a looser financial environment.
Goldman Sachs Reduces U.S. Recession Risk to 25% Amid Strong Job Growth
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