Goldman Sachs raises forecast for US economic growth

US investment bank Goldman Sachs has increased its expectations for the country's gross domestic product (GDP) and the size of the stimulus package for the coronavirus pandemic.

Economists at Goldman Sachs have raised their forecast for the GDP growth for the second quarter of this year by one percentage point from 10% to 11%. The investment bank also upgraded its outlook on for the size of the incentive package from the previous $1.1 trillion to $1.5 trillion.

Goldman Sachs has raised its growth forecast for the US economy this year and next by 0.2 percentage points to 6.8% and 4.5%, respectively.

"We expect the Federal Open Market Committee (FOMC) to start reducing asset purchases next year," the bank said in a statement.