US to outpace peers again as global economy set to outperform

Goldman Sachs economist predict strong income growth and they expect that that rate hikes have already delivered their biggest hits to GDP growth. Central banks, meanwhile, will have room to reduce interest rates if they’re concerned about the economy slowing. “This is an important insurance policy against a recession,” says Goldman Sachs Research Chief Economist Jan Hatzius. Worldwide GDP is forecast to expand 2.6% next year on an annual average basis, compared with the 2.1% consensus forecast of economists surveyed by Bloomberg. And notably, our economists expect US growth to outpace its...