Goldman Sachs CEO Optimistic about soft landing of US economy Concerned about Middle East situation
David Solomon, CEO of Goldman Sachs, recently attended the “Future Investment Initiative” forum in Saudi Arabia and discussed the US economy, global investment environment, and the Middle East conflict. He is optimistic about the resilience of the US economy, stating that there is a chance for a “soft landing.” He also has a positive outlook on the increase in investment and merger activities. However, he expresses concerns about the escalating geopolitical tensions in the Middle East.
He expects a soft landing for the US economy. Solomon believes that the US economy has strong resilience and the potential for a soft landing. He thinks that the US economy’s momentum is strong and is expected to continue growing in areas such as technology, AI, and healthcare. Regarding the upcoming US presidential election, he states that the election results will determine the policy direction for 2025 and 2026.
Furthermore, he highlights Goldman Sachs’ strong performance in equity trading this year and mentions that the increase in trading activities indicates a gradual recovery of the investment market. According to Goldman Sachs’ third-quarter report, profits increased by 45%, primarily driven by revenue growth in stock trading and a rebound in investment banking, with net revenue reaching $3 billion, a significant growth compared to $2 billion in the same period last year.
Expanding business in the Middle East actively, concerns about Israel and Iran conflict.
Solomon announces that Goldman Sachs will open a new office in Riyadh, the capital of Saudi Arabia, to strengthen its business presence in the region. With the increase in IPO and merger activities in Riyadh, he points out that international investors are highly interested in the local market. Goldman Sachs is prepared to further expand its business in the Middle East, including investment banking, trading, and asset management. Solomon adds that with the increasing competition between Saudi Arabia and Dubai, financial activities in the region are growing, providing a better foundation for Goldman Sachs’ local development.
Solomon expresses concerns about the intensifying conflict between Israel and Iran. He states that despite the unstable situation, local business activities have not been significantly affected. He hopes that leaders of various countries can find solutions to promote peace and stability in the Middle East.
Goldman Sachs excels in the private credit field.
Solomon particularly emphasizes Goldman Sachs’ long-term investment in private credit, stating that it is a continuously growing sector. He says, “Goldman Sachs has been operating in the private credit field for over 30 years and currently manages $140 billion in private credit assets. Our strong underwriting and management capabilities are one of our key strengths.” He believes that there are significant growth opportunities in private credit, especially when facing broader investment demands, making Goldman Sachs an important player in the market.
