The global computer chip shortage could have larger ramifications than making it harder to buy the latest video game console or more expensive to buy a car. According to a new Goldman Sachs (GS) note, the slowdown in chip availability could in theory smack U.S. GDP by as much as 1% in 2021.

In a research note led by Goldman’s Spencer Hill, an analysis looked at the economy-wide effects of the shortage by assuming a 20% chip shortfall that lasts three quarters and affects the 169 U.S. industries that use semiconductors in their products.

“Some computer chips have no available substitute, and if output of every product that uses chips were to decline proportionately, the drag on 2021 GDP would be around 1%,” the note said, while noting that in reality the drag will likely be smaller, in part, because firms will find ways to reconfigure their products.

U.S. President Joe Biden delivers holds a semiconductor chip as he speaks prior…

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