Goldman Sachs predicts that the U.S. economy will outperform expectations in 2026, with real GDP growth projected at 2.8%, higher than the market consensus of 2.2%. Chief U.S. economist David Mericle noted that tax cuts, real wage growth, and new business investment incentives in the "One Big Beautiful Bill Act" will all bring positive effects. The firm also expects that by the end of the year, core personal consumption expenditure (PCE) inflation will fall back to 2.2%, but warns that a weak labor market remains a major risk.