Goldman Sachs Research features original insights on the economy, markets and industries, drawn from research teams around the world.
Featured
Global Markets Institute
The Global Markets Institute is the research think tank within Goldman Sachs Research, providing insights on public policy, markets and corporate strategy. Learn More
Economic Outlooks
Goldman Sachs economists and experts share insights on macro trends shaping the global economy. Learn More
Top of Mind
Allison Nathan of Goldman Sachs Research dives into macro developments that are top of mind for investors, executives and policymakers. Learn More
Latest
Batteries: The Greenflation Challenge II
In this report, Goldman Sachs Research analysts discuss six key topics about greenflation that are relevant to investors and increase their battery pack price forecasts.
Global Views: Still on the Same Narrow Path
While the increase in US nonfarm payrolls in May beat expectations, the unemployment rate has been flat for three months to early June, job openings have started to decline and the official JOLTS series dropped sharply in April. For these reasons, Goldman Sachs Research sees the US economy on a narrow path to a soft landing.
Battery Metals Watch: The End of the Beginning
Goldman Sachs Research analysts argue that the battery metals bull market has peaked. With climate change being top of mind, investors are fully aware that battery metals will play a crucial role in the 21st century global economy, just as bulk and base metals did before them.
GS SUSTAIN: Supply Chain Mosaic
Goldman Sachs Research is introducing a new framework for generalists and ESG investors, the GS SUSTAIN Supply Chain Mosaic, to plug gaps in a patchy data landscape for measuring supply chain risks and to assess business resilience. The collaborative framework blends data on supply chain location and concentration with GS SUSTAIN proprietary scoring of suppliers’ ESG engagement and sovereign ESG risk.
The Economics of Algorithmic Stablecoins
GS Research analysts examine the major drop in cryptocurrency prices and how digital asset markets have been dominated by volatility in stablecoins (cryptocurrencies intended to be pegged 1:1 with fiat currencies, most commonly the US Dollar). While these assets are fairly new, many of the economic issues affecting stablecoins will be familiar to FX market participants and other investors.
The Postmodern Cycle
From the 1980s a 'Modern Cycle' evolved driven by lower inflation, independent central banks, globalization, lower volatility, longer cycles and higher profit shares of GDP. GS Research analysts argue that we are entering a new 'Postmodern' cycle in which inflation is a bigger risk than deflation. They also predict that we are likely to see greater regionalization, more expensive labor and commodities, as well as larger and more active governments.
ESG of the Future: A Forward Look at Corporate Greenhouse Gas Emissions, Potential ESG Improvers
Goldman Sachs Research expects increased focus on corporate emissions of greenhouse gases as ESG markets become more forward-looking and in response to both rising regulations including proposals from the SEC and carbon pricing considerations.
GS SUSTAIN: The Evolution Towards a Circular Economy
The need to move towards a Circular Economy – one in which consumption of ecological resources is equal to or less than what the planet can regenerate – has been discussed for years but not sufficiently deployed. However, we see three catalysts that can push forward deployment of Circular Economy solutions, which, based on a World Economic Forum study, could potentially unlock $1 tn of annual materials savings.
Green Metals: Nickel's Class Divide
Nickel now sits at the intersection of Europe’s push for decarbonisation and energy independence. With Europe’s domestic EV sector already favouring nickel-based batteries, nickel is set to benefit the most from politically motivated demand accelerating already rapid growth in nickel battery use.
Green Metals: Solving Aluminium’s Climate Paradox
At the heart of the coming surge in green aluminium demand lies a paradox: aluminium is a key input required to produce decarbonising technologies like EV’s and solar power, yet its own production is very carbon intensive, generating 2% of all global emissions. This paradox begs the question: how can we secure enough aluminium to effectively decarbonise, while keeping the climate impact of the path to net zero to a minimum?
Green Metals: Copper is the New Oil
The critical role copper will play in achieving the Paris climate goals cannot be overstated. As the most cost-effective conductive material, copper sits at the heart of capturing, storing and transporting these new sources of energy.
Asianomics in America: Contributions and Challenges
Goldman Sachs Research reviews the key economic trends shaping the Asian American experience in the US, the barriers they face to advancement in the workplace and representation in top leadership positions, and the contributions they’ve made to innovation and GDP growth.
ESG Regulations: US SEC Proposes Major New Climate Disclosure Requirements
The GS SUSTAIN team believes that 2022 will be a watershed year for ESG-related capital markets regulation in the US. The climate disclosure rule proposal from the SEC on 21 March 2022 opens the door for the broadest federally mandated corporate ESG data disclosure requirement ever in the US.
SFDR, One Year On: The Trends and Anatomy of Article 8 & 9 Funds
One year after the launch of the first stage of the European Sustainable Finance Disclosure Regulation (SFDR), SFDR funds are growing significantly compared to non-ESG counterparts. The GS SUSTAIN team has reviewed the implications of the SFDR regulation and disclosure requirements. Their analysis of the various approaches taken across asset managers concludes that not all Article 8 or 9 funds are created equal, in a good way.
Carbonomics: Security of Supply and the Return of Energy Capex
The Russia-Ukraine conflict is a turning point for the energy sector, according to analysis from Goldman Sachs Research. One that is similar to, and potentially greater than, the Fukushima nuclear accident and Libyan civil war concurrence in 2011. In this report, analysts examine this Return of Energy Capex and draw five key conclusions.
Batteries: The Greenflation Challenge
Ever-increasing demand, component shortages and rising raw material prices are now challenging the long-standing consensus that battery prices will continue to decline in the coming decade. To assess the impact of this “Greenflation” and potential supply chain bottlenecks ahead, Goldman Sachs Research introduces a proprietary battery pack price and cost curve model, supply-demand models across battery components and a bear case battery TAM scenario.
Electric Vehicles: What's Next VII: Confronting Greenflation
In this report, the seventh installment of our Electric Vehicles: What’s Next series, analysts from Goldman Sachs Research outline their new forecast for a slower pace of decline for automotive battery prices through 2025, and they consider the outlook for the EV and automotive battery markets under three scenarios (bear, base, and hyper-adoption).
Oil: Squaring Russia's Missing Barrels
Escalating military conflict in Ukraine and the growing realization that imposed sanctions could meaningfully and sustainably reduce Russian exports, even with carve-outs for energy trade, has resulted in oil prices surging to their highest level since 2008. Given Russia’s key role in global energy supply, the global economy could soon be faced with one of the largest energy supply shocks ever. Goldman Sachs Research builds three scenarios in an attempt to provide an estimate of where oil prices are heading.
Global Markets Daily: How Much Risk is Priced into Global Assets Now?
The invasion of Ukraine and the escalating sanctions on Russia continue to be the dominant driver of markets. Before the start of military action, Goldman Sachs Research estimated how much geopolitical risk premium was priced into a range of global assets and estimated how those assets might move in the case of either a full de-escalation or a version of a scenario where risks flared into outright conflict.
GS SUSTAIN: An Analysis of APAC ESG Regulation
The increased need for greater transparency and tightened definitions for sustainable investment products is accelerating ESG regulation throughout the Asia Pacific region. These companion reports from the Goldman Sachs Research GS SUSTAIN team explore the material ESG regulations emerging across the region and highlight the connection between regulation and expanding green valuation premia.
The Bigger Picture: UK Social Mobility - A Tough Climb
The UK performs poorly on international comparisons for both social mobility and inequality. According to surveys, covid is increasing inequality further, and recent rises in inflation, especially energy costs, are intensifying the problem. But, corporate managements are starting to focus on social issues (encouraged by the flows into ESG funds). Goldman Sachs Research has started to see investment intentions pick up in survey data and the potential to bring back supply locally or make supply chains more resilient may also increase employment opportunities in the UK.
A Shares in Anatomy: 'A' Primer for Global Investors
At a time when some investors are questioning the investability of Chinese assets due to significant regulation and growth concerns, Goldman Sachs Research believes China A shares, a US$14tn asset class, have become more investable given the ongoing liberalization and reform measures in the Chinese capital markets.
Korea: What if? Strong Upside from Potential MSCI DM Reclassification and Narrowing of Valuation Discount
Korea’s potential reclassification as a developed market is gaining traction. The Finance Minister and Korea Exchange Chairman have publicly advocated changes that specifically address impediments to MSCI upgrading Korea to developed market (DM) status. Also, there appears to be broad political consensus for the upgrade initiative given the election platforms of the major presidential candidates.
Black Womenomics: Equalizing Entrepreneurship
Black women are underrepresented in business ownership. What will it take to equalize their opportunities? Goldman Sachs Research examined some of the barriers.
Moving to Seven Rate Hikes in 2022
Following the strong CPI print on February 10th, Goldman Sachs Research is raising their Fed forecast to include seven consecutive 25bp rate hikes at each of the remaining FOMC meetings in 2022 (vs. five hikes in 2022 previously). They continue to expect the FOMC to hike three more times at a gradual once-per-quarter pace in 2023Q1-Q3 and to reach the same terminal rate of 2.5-2.75%, but earlier.
Carbonomics: The Clean Hydrogen Revolution
Clean hydrogen has emerged as a critical pillar to any aspiring net zero path. Policy, affordability, and scalability are converging to create unprecedented momentum for the clean hydrogen economy.
EU Taxonomy - Progress on the Journey to Alignment
The EU Taxonomy is ramping up to become the “common green standard” used to credentialize companies’ green revenue and capex as well as investors’ green investments. With the initial climate phase having taken effect, Goldman Sachs Research sees 2022 becoming a critical period of experimentation and engagement between investors and corporates around disclosures and alignment-estimation models leading up to full Taxonomy application from January 1, 2023.
Electrify Now: The rise of Power in European Economies
While previous Goldman Sachs Research has focused on the 2050 net zero end game, here they explore a more immediate, more tangible topic; one that is poised to revolutionize European economies and our everyday lives: the urgency of electrification.
US Economics Analyst: 10 Questions on the Political and Policy Outlook for 2022
Will Congress pass any reconciliation package this year? Will Democrats maintain control of Congress after the November midterm elections? Goldman Sachs Research’s economists offer insight into these questions and more.
European Economics Analyst: 10 Questions for 2022
Although the renewed surge in Covid infections is likely to weigh on services activity over the winter, Goldman Sachs Research expects a more manageable hit to European economic activity than last year.
Asia Economics Analyst: Ten questions for 2022
Regional growth will decelerate this year, but should remain above trend in many economies.
EU Taxonomy Update - Inclusion of Natural Gas and Nuclear
The European Commission has released plans to include some natural gas and nuclear energy power plants as ‘green’ under the existing EU Taxonomy’s Climate Change Mitigation objective. We believe this would help provide some guarantee to Europe’s volatile energy supply as renewables scale and help ensure a smoother transition to a low carbon economy.
Global Views: Earlier Runoff, Four Hikes
Chief Economist Jan Hatzius discusses the Omicron variant's effect on the economic outlook for 2022, and how persistent inflationary pressures could modify the Fed’s schedule for hikes and balance sheet normalization.
Framing the Future of Web 3.0: Metaverse Edition
In this report, Goldman Sachs Research examines how the gaming/media landscape has already shown some key elements as to how the Metaverse might evolve and how themes such as decentralized web activity and virtual experiences could become hallmarks of many of the next wave of computing in Web 3.0.
Investing in EM Womenomics
Recent years have seen a surge in investing with social and environmental impact in mind, including across emerging markets. One aspect of social impact investing concerns the role of women in the economy – or Womenomics. To assess how investing based on Womenomics can impact investment returns, Goldman Sachs Research constructed a Womenomics Index across emerging markets sovereign debt based on five factors: education, labour, agency, women in power and health.
Carbonomics: The Economics of Net Zero
Learn about the wide-ranging variables playing a part in the push to a net-zero carbon future—from government action to tech innovation to market pressures—in our interactive data visualization.
Carbonomics: The Dual Action of Capital Markets Transforms the Net Zero Cost Curve
In this report Goldman Sachs Research examines how capital markets' deep engagement in sustainability is driving de-carbonization through a divergence in the cost of capital of high carbon vs. low carbon investments.
Outlook 2022: The Long Road to Higher Rates
Goldman Sachs Research says the fastest pace of the recovery now lies behind us, but there are reasons for optimism on global growth heading into 2022.
Carbonomics: Taking the Temperature of European Corporates - An Implied Temperature Rise (ITR) Toolkit
In this report Goldman Sachs Research leverages their Carbonomics Net Zero Paths to gauge the implied temperature rise of corporate de-carbonization through the lenses of >110 corporates in the 15 most carbon intensive sectors of the European market.
EM Ex-China as a Separate Equity Asset Class
With a strengthening debate among investors for splitting an emerging market (EM) mandate into China and EM ex-China strategies, given China’s significant market size, its rising dominance in the EM benchmark and idiosyncratic factors such as geopolitics and regulatory policy that could affect its performance, Goldman Sachs Research discusses the implications for investors and portfolio allocations.
Green Capex: Making Infrastructure Happen
Goldman Sachs Research believes Green Capex will be the dominant driver of global infrastructure over the next decade, with $6 trillion of investment needed annually to decarbonize the world, address water needs and shore up transportation and other critical systems.
Indian Equities: Digital Transformation as Private Goes Public
The number of “unicorns” has surged in India in recent years, enabled by the rise of the internet ecosystem, availability of private capital and a favorable regulatory environment. Goldman Sachs Research expects the IPO pipeline to remain robust over the next 12-24 months, with market cap increasing from US$3.5tn currently to over US$5tn by 2024, making India the 5th largest market by capitalization.
Carbonomics: Five Themes of Progress for COP26
COP26 is a historical opportunity to accelerate the de-carbonization pledges laid out by COP21 (the Paris Agreement) in 2015. In this report Goldman Sachs Research analyzes five key themes of change they believe can drive progress.
Carbonomics: Introducing the GS Net Zero Carbon Models and Sector Frameworks
Goldman Sachs Research presents modelling for two paths to net zero carbon, with two global models of de-carbonization by sector and technology, leveraging the team’s proprietary Carbonomics cost curve.
Euro 2020—Modelling the Beautiful Game
Following a year of delay, the Euro 2020 will finally go ahead on June 11. As the excitement for the tournament builds, Goldman Sachs Research constructs a statistical model to simulate the European Cup, which we intend to update as the tournament progresses.
Black Womenomics: Investing in the Underinvested
Goldman Sachs research has shown that one of the fastest ways to accelerate change and effectively begin to address the racial wealth gap is to listen to and invest in Black women. Our Black Womenomics research focuses on the wealth gap, its relationship with these economic disadvantages, and the public and private investment opportunities to help close these gaps.
Q&A on Womenomics: Where is Europe now?
As progress on female representation at executive levels continues, Goldman Sachs Research reviews some of the key questions encountered in response to its research.
Carbonomics: China Net Zero - The Clean Tech Revolution
China’s pledge to achieve net zero carbon by 2060 represents two-thirds of the c.48% of global emissions from countries that have pledged net zero, and could transform China's economy, starting with the 14th Five-Year Plan.
Carbonomics: 10 Key Themes From the Inaugural Conference
Goldman Sachs Research hosted its first Carbonomics conference in London on November 12, focused on the de-carbonization trends and technologies currently transforming all major industries. The virtual conference convened approximately 5,000 investors, company managers, regulators and industry experts, with speakers and panelists including 30 CEOs of leading corporates and key policymakers.
Measuring the Reopening of America: Range of Recovery Paths Widen for Different Categories, Remain a ‘4’
In week 25 of the Measuring the Reopening of America series, several back-to-normal categories that had improved over the past few weeks reversed trends, including lodging and dining, while stay-at-home vertical growth largely decelerated. Net, our composite score remains the same as last week as the pace of reopening continues to fluctuate across different categories but the overall trend fails to show progress for essentially the third month.
Carbonomics: Innovation, Deflation, and Affordable De-carbonization
Net zero is becoming more affordable as technological and financial innovation, supported by policy, are flattening the de-carbonization cost curve. Goldman Sachs Research updates its 2019 Carbonomics cost curve to reflect innovation across c.100 different technologies to de-carbonize power, mobility, buildings, agriculture and industry, and draw three key conclusions.
Womenomics: Europe Moving Ahead
In Europe there are some tantalising signs of progress on women’s contribution to the economy: most notably, participation rates for women in the workforce have risen dramatically and continue to move up. In many European countries they are now above rates in the US.
The Corporate Commotion - A Rising Presence of ESG in Earnings Calls
Since Goldman Sachs Research's report A Revolution Rising - From low chatter to loud roar (April 2018), a virtuous cycle of ESG adoption has continued, driven by consumers, employees, regulators, corporates, NGOs and investors, leading to ESG strategy becoming a critical component of corporate & investor conversations. This report revisits our analysis using earnings transcript analysis tools to track the development of ESG themes over the past 5 years among global corporates in the S&P 500, STOXX 600 and ASX 200.
Green Hydrogen: The Next Transformational Driver of the Utilities Industry
Green hydrogen looks poised to become a once-in-a-generation opportunity: Goldman Sachs Research estimates it could give rise to a €10 trillion addressable market globally by 2050 for the Utilities industry alone.
Measuring the Reopening of America: Composite Score Declines Continue for Second Straight Week
Following our first 6 weeks in the series, GS Research continues to monitor the reopening of America, as cities and states across the U.S. begin to reopen at different paces and with different processes in place.
Carbonomics: The Rise of Clean Hydrogen
Clean hydrogen has a major role to play in the path towards net zero carbon, providing de-carbonization solutions in the most challenging parts of the Carbonomics cost curve - including long-haul transport, steel, chemicals, heating and long-term power storage.
Sustainable ESG Investing: Turning Promise into Performance
Environmental, social and governance (“ESG”) investing is at a deep level all about sustainability, yet we rarely ask the question, “How sustainable is ESG investing itself?” Here, we seek to provide a clearer sense of where ESG investing fits in the broader scope of active asset management, examine the gaps it fills and use that assessment to better structure the ESG investing processes, assess its place in asset allocation and rethink the metrics we apply to it.
Carbonomics: The Green Engine of Economic Recovery
Clean tech has a major role to play in the upcoming economic recovery. Leveraging our Carbonomics cost curve, we estimate that clean tech has the potential to drive US$1-2 tn pa of green infrastructure investments and create 15-20 mn jobs worldwide, through public-private collaboration.
Measuring the Reopening of America: Moving to a ‘2’
Following our first five weeks in the series, GS Research continues to monitor the reopening of America, as cities and states across the U.S. begin to reopen at different paces and with different processes in place.
Measuring the Reopening of America: Likely the last week at ‘1’
Following our first four weeks in the series, GS Research continues to monitor the reopening of America, as cities and states across the U.S. begin to reopen at different paces and with different processes in place.
The Great Reset: A Framework for Investing After COVID-19
Goldman Sachs Research explores topics and questions related to COVID-19 and provides a framework for the post-COVID-19 investing environment across three phases (preservation, consolidation and innovation) that capture the structural dynamics of the competitive environment.
Measuring the Reopening of America: Steady Progress Though the Scale Remains at 1
Following our first three weeks in the series, GS Research continues to monitor the reopening of America, as cities and states across the U.S. begin to reopen at different paces and with different processes in place.
Measuring the Reopening of America: Signs of Progress
Following our first two weeks in the series, GS Research continues to monitor the reopening of America, as cities and states across the U.S. begin to reopen at different paces and with different processes in place.
Measuring the Reopening of America: The GS US Reopening Scale
With cities and states across the US beginning to reopen, Goldman Sachs Research has introduced a new weekly tracker to help gauge progress in a wide range of consumer and business segments.
Measuring the Reopening of America: Introducing the Reopening Scale
With cities and states across the US beginning to reopen, Goldman Sachs Research has introduced a new weekly tracker to help gauge progress in a wide range of consumer and business segments.
Carbonomics: The Future of Energy in the Age of Climate Change
Climate change is re-shaping the energy industry through technological innovation and capital markets’ pressure.
Closing the Gender Gaps 2.0: Fresh Data Show More Work to Do
The latest gender pay gap analysis from the Global Markets Institute reveals that the unexplainable share of the wage gap has increased — a sign there’s more work to be done. Read Report
Taking the Heat: Making Cities Resilient to Climate Change
Cities will be on the frontlines of climate adaptation. Building up their resilience has the potential to drive one of the largest infrastructure build-outs in history and will likely require innovative sources of financing. Read Report