Advanced nations forecast to stall, emerging economies likely to maintain faster growth

WASHINGTON: Pacific Investment Management Co (Pimco), which runs the world's biggest bond fund, is forecasting that advanced economies will stall over the next year as Europe slides into a recession, underscoring mounting investor concern about the global economic outlook.

There would be little-to-no economic growth in industrial nations in the coming 12 months as Europe's economy shrunk by 1% to 2% and the United States stagnated, said Mohamed El-Erian, chief executive officer of Newport Beach, California- based Pimco. That will leave worldwide expansion at about 2.5%, less than the 4% forecast by the International Monetary Fund (IMF) this year and next.