Goldman Sachs sharply cut its economic outlook for the European economy for the fourth quarter on Monday, as rising COVID-19 cases led to the block's major countries declaring a partial nationwide lockdown for November.
The investment bank said it expects the euro area's real gross domestic product (GDP) to contract 2.3% in the fourth quarter, well below its earlier forecast of 2.2% growth.
Likewise, he cut his forecasts for UK GDP growth to minus 2.4% from 3.6% growth that was previously expected.
Looking ahead, we anticipate the new restrictions will be in effect for three months before they are phased out starting in February, "Goldman Sachs economists wrote in a note to clients.
