Pimco Sees U.S. Growth Slowing to 1% in First Half of 2020

PIMCO highlights the global economy's vulnerability to shocks, with the US entering a low growth phase. While a recession is not the base case, the economy is at stall speed, making it susceptible to tipping over. The US is slowing down, with growth expected to drop to 1% next year. The global trade recession is affecting the US service sector and consumer. The outlook is uncertain, with potential for both recovery and recession. PIMCO advises caution and risk management during this period of elevated uncertainty.

What is the main concern for the global and U.S. economy according to PIMCO?

• High inflation rates

• Low growth and vulnerability to shocks

• Rising unemployment

• Increasing trade barriers

What is the expected growth rate for the U.S. economy in the first half of next year?

• 3%

• 2%

• 1%

• 0%

Which sector in the U.S. is being affected by the global trade recession?

• Agriculture

• Manufacturing

• Technology

• Service sector

How does PIMCO describe their conviction in the recovery as the base case?

• Higher than usual

• Lower than usual

• Unchanged

• Very high

What approach does PIMCO suggest during this period of economic uncertainty?

• Increase investments

• Take more risks

• Step back and reduce risks

• Ignore the market trends