LONDON (Reuters) – Goldman Sachs sharply cut Europe’s fourth quarter economic forecasts on Monday as a surge in COVID-19 cases led to major countries announcing partial nationwide lockdowns for November.
The U.S. investment bank said it expects the euro area’s real gross domestic product (GDP) to shrink 2.3% in the fourth quarter, a sharp reversal from its earlier projection of 2.2% growth.
Similarly, it cut UK GDP growth forecasts to minus 2.4% from a 3.6% expansion it had earlier expected.
“Looking ahead, we assume that the new restrictions will last for three months before they are gradually rolled back starting in February,” Goldman Sachs economists wrote in a note to clients.
(Reporting by Thyagaraju Adinarayan, editing by Huw Jones)
