OctaFX | OctaFX Forex Broker
Open trading account

Forex: Flash: US GDP to grow 3.2% in Q1 and 2.1% in the whole 2013 - Goldman Sachs

FXstreet.com (San Francisco) - The US Bureau is schedule to publish the Annualized GDP for the Q1 in the United States next Friday April 26th at 12:30 GMT (8:30 ET) and the market is expecting a year to year increase of 3.0% in the first quarter of 2013. That would be a bounce from the weak 0.4% annualized growth in the last quarter of 2012.

However, Goldman Sachs analysts see "a rebound to 3.2% in 2013Q1 and a slowdown to 2% in 2013Q2 and Q3, before a pick-up to 2.5% in the last quarter of the year." In the whole year, Goldman analysts expect a "moderate growth of 2.1% in 2013 followed by an acceleration" in 2014.

Looking into the years to come, Goldman expects an "above-trend growth at around 3%-3.5%" in 2014 and the "growth should then remain slightly above that rate in 2015 and 2016."

The bank expects "the frontloaded ‘sequester’ to be a significant drag on growth," in Q2 and Q3, "while in the intermediate and long term we see further strength in the private sector, led by the ongoing housing recovery, rising business investment and financial
rebalancing in the household sector."

Wall Street closed higher on Friday but performed its worst week in 2013

The US stocks market has closed the Friday's session with gains as investors were positioning after the Thursday's sell off. In the weekly basis, all three major indexes collapsing more than 2% as weak economic data and disappointed corporate earnings were hurting investors’ confidence. Apple's share dropped 9.1% on the week.
Read more Previous

Session Recap: Fitch hurts the Pound and the Dollar advanced in the day

The USD traded higher on Friday after recovering initial losses as investors were repositioning after yesterday sell off in equities. With no real economic data, the risk aversion bolstered the correction higher.
Read more Next
Start livechat