Goldman Sachs CEO: Optimistic about the U.S. economy's "soft landing," concerned about the situation in the Middle East

Goldman Sachs CEO David Solomon recently attended the "Future Investment Initiative" forum in Saudi Arabia, where he discussed the U.S. economy, global investment environment, and conflicts in the Middle East. He expressed optimism about the resilience of the U.S. economy, suggesting a potential "soft landing," and also had a positive outlook on the increasing merger and acquisition activities. However, he also expressed concerns about the escalating geopolitical tensions in the Middle East. Interview link.

Anticipated Soft Landing of the U.S. Economy

Solomon stated that the U.S. economy shows strong resilience and has the potential for a "soft landing." He believes that the U.S. economy has strong momentum and is expected to continue growing in areas such as technology, AI, and healthcare. With the upcoming U.S. presidential election, he mentioned that the election results will determine the policy direction for 2025 and 2026.

Furthermore, he emphasized the strong performance of Goldman Sachs in equity trading this year, noting that increased trading activities indicate a gradual recovery in the investment market. According to Goldman Sachs' third-quarter report revealed a 45% profit growth, primarily driven by increased revenue from stock trading and a rebound in investment banking business, with net revenue reaching $3 billion, a significant increase from $2 billion in the same period last year.

Actively Expanding Middle East Business, Concerns over Israel and Iran Conflict

Solomon announced that Goldman Sachs will open a new office in Riyadh, the capital of Saudi Arabia, to strengthen its business presence in the region. With increasing IPO and M&A activities in Riyadh, he noted that international investors are highly interested in the local market, and Goldman Sachs is prepared to further expand its business in the Middle East, including investment banking, trading, and asset management. Solomon added that as financial activities in Saudi Arabia and Dubai intensify, it provides a better foundation for Goldman Sachs' local development.

Solomon expressed concerns over the escalating conflict between Israel and Iran. He mentioned that despite the unstable situation, local business activities have not been significantly affected, and he hopes that leaders of various countries can find solutions to promote peace and stability in the Middle East.

Goldman Sachs Excels in Private Lending Sector

Solomon also highlighted Goldman Sachs' long-term investments in private lending, stating that it is a growing sector. He said, "Goldman Sachs has been operating in the private lending sector for over 30 years, currently managing $140 billion in private lending assets. Our strong underwriting and management capabilities are among our key strengths." He believes there are significant growth opportunities in private lending, especially in the face of broader investment demands, where Goldman Sachs is poised to be a key player in the market.

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