Goldman Says US Economy to Flounder

The global economy is set to enjoy steady growth with one notable exception according to a note from Goldman Sachs out Tuesday morning, CNBC reported. The firm’s portfolio strategy research team calls for 3.9% annual global growth through 2020, but believes GDP in the US will decelerate to just 1.5%. The US Commerce Department’s official figure had US growth at 3.1% after the second quarter of this year–the last quarter for which statistics are available. President Donald Trump has made 3% economic growth a key part of his administration’s bar for success, but if Goldman’s prediction is right, he has his work cut out for him. The note also comes at a time when the administration and Congressional Republicans are trying to formulate a tax cut plan they hope will stimulate the American economy more than the rest of the globe. “Growth typically outperforms value in periods of solid but unspectacular activity” because “investors place a premium on growth stocks that are able to expand their top-line despite modest economic growth,” according to the note.