How Kamala Harris’ Win Could Impact US Economic Growth

As the US presidential election draws closer, financial experts at Goldman Sachs have weighed in on how the victory of Kamala Harris could affect the country’s economic growth. According to their analysis, Harris’ win could lead to positive growth over the next two years, while a victory for Donald Trump might have a negative impact on the economy.

Goldman Sachs predicts that under a Republican sweep or with a divided government led by Trump, economic output could suffer due to increased tariffs on imports and stricter immigration policies. In contrast, a Democrat-led government would likely see more job growth compared to a Republican administration.

The report states, “If Democrats sweep, new spending and expanded middle-income tax credits would slightly more than offset lower investment due to higher corporate tax rates, resulting in a very slight boost to GDP growth on average over 2025-2026.”

Under a Harris administration, job growth could be significantly higher, with estimates suggesting an increase of 10,000 jobs per month compared to a Trump win with a divided government and 30,000 jobs higher than a Republican sweep.

Furthermore, Goldman Sachs warns that a Trump victory could lead to increased tariffs on auto imports from China, Mexico, and the European Union, raising core inflation rates in the process.

Current Poll Data

In a recent CNN poll, Kamala Harris is leading Donald Trump in four battleground states. She holds a significant lead in Wisconsin and Michigan, with narrower margins in Georgia and Nevada. The pair are also tied in Pennsylvania, while Trump leads in Arizona.

Overall, the financial outlook for the US economy seems tied to the outcome of the election, with Harris’ victory potentially signaling a period of growth and stability, according to experts at Goldman Sachs.

https://timesofindia.indiatimes.com/world/us/goldman-sachs-predicts-biggest-boost-to-economy-if-harris-wins-if-trump-/articleshow/113073203.cms