BofA lowers U.S. 2021 GDP forecast to 6.5% from 7.0%

BofA lowers U.S. 2021 GDP forecast to 6.5% from 7.0%

BofA lowers U.S. 2021 GDP forecast to 6.5% from 7.0%

Shoppers carry bags of purchased merchandise at the King of Prussia Mall, United States’ largest retail shopping space, in King of Prussia, Pennsylvania, U.S., December 8, 2018. REUTERS/Mark Makela/File Photo

LONDON, July 16 (Reuters) – The U.S. economy has moved past the peak in growth and inflation, BofA said on Friday, as it cut its gross domestic product (GDP) forecast for this year.

In a note, the bank said it has tweaked its forecasts to reflect recent data and now looks for real GDP growth of 6.5% this year versus 7% previously.

“Economic growth has started to moderate but importantly we think the economy will settle on a growth trajectory that is still more than double the pace of the pre-pandemic rate, surprising many to the upside,” BofA economists said in a note.

They said they still expect 5.5% growth next year.

Reporting by Dhara Ranasinghe, editing by Karin Strohecker

Our Standards: The Thomson Reuters Trust Principles.