(Bloomberg) - David Solomon expects the US economy to accelerate into 2026 as tailwinds from continued stimulus and tech spending outweigh a softer labor market and geopolitical turmoil.
Government spending and “all of the AI infrastructure build” means — on balance — the economy was “still in pretty good shape,” the Goldman Sachs Group Inc. CEO said, despite the impact of tariffs and a slower US job market.
Solomon previously warned on Sept. 10 that the US economy was softening, citing President Donald Trump’s trade policies as a factor.
The banking boss also expects dealmaking to pick up even further in the US, he said in an interview at Italian Tech Week in Turin. The “changed regulatory environment” means CEOs are increasingly ambitious when it comes to M&A.
Solomon said he expects a “drawdown” from equity markets in the next 12 to 24 months. But that shouldn’t be a surprise given the long runup in stocks, seen particularly in the largest AI-driven technology plays. “I’m not going to bed every night worrying about what’s happening next,” he said.
At Goldman Sachs, Solomon aim to invest more in new technology to make staffers more productive.
“We’ll spend $6 billion on technology this year. I would have liked to spend eight, but I can’t afford it because I’ve got to deliver returns,” he said.
“There are places where the numbers of jobs, the actual jobs will come down” as a result of technological improvements, he said, while adding that overall headcount at his bank will likely rise over the next ten years. “I think we can continue to grow Goldman Sachs, I think we can continue to serve a wider slice of clients with these tools and these capabilities being integrated into the firm, changing our processes.”
