Goldman Sachs CEO: Driven by AI infrastructure and government spending, the U.S. economy will accelerate before 2026
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David Solomon, CEO of Goldman Sachs Group, predicts that, driven by strong government spending and the robust construction of artificial intelligence infrastructure, U.S. economic growth will accelerate before 2026, while corporate M&A activity will also further heat up.
On October 3, he said, “Despite challenges such as the impact of tariffs and a slowing job market, multiple tailwinds mean the U.S. economy is still in pretty good shape.”
Solomon’s latest assessment marks a notable shift from his recent views. As recently as September 10, he had warned that, due to factors such as President Trump’s trade policies, the U.S. economy was losing steam.
Solomon expects M&A activity to become more active due to changes in the regulatory environment, and that the U.S. stock market may see a “correction” in the next 12 to 24 months. However, he believes that after a prolonged rise, such a correction would not be surprising and he “won’t be losing sleep over it.”
Drivers of Economic Growth: AI Infrastructure and Government Spending
Solomon believes that government spending and the construction of “all AI infrastructure” are key tailwinds driving the economy forward. These positive forces are sufficient to offset the negative effects of tariffs and the slowdown in the U.S. labor market, thus keeping the economy in good overall shape.
This judgment contrasts with his previous stance. In September, Solomon had warned that the Trump administration’s trade policies were leading to economic weakness. Now, he believes that massive investment in the technology sector, particularly in AI-related infrastructure, is injecting new vitality into the economy and will continue to have an impact in the coming years.
Although optimistic about the macroeconomy, Solomon remains cautiously optimistic about a stock market that has risen for years. He expects that the stock market will undergo a “correction” in the next 12 to 24 months.
However, he emphasized that, considering the previous long-term rally of the stock market—especially the massive gains accumulated in large AI-driven tech stocks—a correction is a normal phenomenon and should not cause excessive worry. He stated:
“I won’t lose sleep over what might happen next.”
Goldman Sachs Itself: Tech-Driven Transformation
In terms of deal activity, Solomon expects that the U.S. M&A market will further heat up. He stated that a “changed regulatory environment” is making corporate CEOs more ambitious in terms of mergers and acquisitions.
Solomon’s optimism is also reflected in Goldman Sachs’ own operating strategy. He revealed that Goldman Sachs will invest $6 billion in technology this year, stating, “I would have liked to invest $8 billion, but we could not afford it due to the need to deliver returns.”
He acknowledged that technological advances will lead to “an actual decrease in some job numbers,” but expects that, over the next decade, Goldman Sachs’ total headcount will still rise. Solomon concluded:
“I think we can continue to grow Goldman Sachs, and by integrating these tools and capabilities into the firm, changing our processes, we can continue to serve a broader client base.”
Risk Warning and DisclaimerThe market has risks, and investment should be made cautiously. This article does not constitute personal investment advice, nor does it consider the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular situation. Investing based on this is at your own risk. ```