Goldman Sachs: Trump's immigration restrictions will weaken U.S. economic growth

Goldman Sachs economists stated that U.S. President Trump's immigration restrictions will have a certain degree of negative impact on the U.S. economy and labor force growth, while the impact on inflation will be relatively limited. A research report released on Monday showed that Goldman Sachs analysts predict a baseline scenario where the annual net immigration to the U.S. sharply declines to 750,000, which will lower this year's potential GDP growth rate by 30-40 basis points (0.3-0.4 percentage points). According to data from the U.S. Census Bureau, 2.8 million people immigrated to the U.S. last year. The composition of immigrants will also change, with Goldman Sachs expecting the net number of undocumented immigrants to be zero, as the 500,000 people deported each year will offset the estimated number of those seeking political asylum and other immigrants. (Bloomberg)