Goldman Sachs: U.S. economy defies global slowdown

Goldman Sachs CEO Simon Denny highlighted the exceptional performance of the United States economy amidst global economic slowdown during his keynote address at the Goldman Sachs 2025 South Africa Conference. Denny pointed out the remarkable resilience and growth of the US economy, contrasting it with sluggish economic growth in Europe, China, and South Africa. The US GDP nearing $30 trillion and a forecasted growth rate of 2.3% this year signify the country's strong economic foundation. Denny emphasized the dominance of the 'magnificent seven' stocks in the S&P 500, which contributed significantly to earnings growth in 2024. Companies like Amazon, Alphabet, Microsoft, and Meta are heavily investing in AI-related CapEx, reflecting the US's focus on innovation and technology. Despite market volatility, the US equities market continues to soar to new heights, with retail investors playing an increasingly significant role in price discovery. However, Denny also cautioned about the rising global uncertainties, mounting national debts, geopolitical tensions, and escalating conflicts worldwide. The shifting tectonic plates in global affairs raise questions about the future world order and economic stability. Additionally, concerns about rising poverty levels and unabated central bank buying add to the complexities of the global economic landscape. Denny's speech shed light on the dichotomy between the US's robust economic performance and the challenges faced by other regions, urging for a holistic approach towards addressing global economic issues.