Goldman Sachs estimates tax reform should boost growth in 2018 :

Goldman Sachs estimates the stimulus to GDP that should be offered by the new tax law.

GS estimates additional growth of 0.3% in 2018 thanks to tax reform. It anticipates the same additional potential of + 0.3% in 2019 as well.

As a result, GS is raising its growth forecast for 2018 and 2019 by 0.3 points and 0.2 points based on q / q growth in Q4, at 2.6% and 1.7%.

The bank anticipates a gradual easing of financial conditions and a solid momentum of growth to end the year.

On the employment front, GS anticipates an unemployment rate of 3.5% by the end of 2018, before reaching a low of 3.3% at the end of 2019.

However, the bank is increasing its deficit forecast and anticipates a deficit of 3.7% of GDP in 2018 and 5% of GDP in 2019.