Europe to Contract as Much as 1.5%, El-Erian Says: Tom Keene – Bloomberg 03-13-13

Salient to Investors:

Mohamed El-Erian at Pimco said:

  • Europe may contract 1 percent to 1.5 percent in the next 12 months with the private sector starved for credit and austerity policies limiting growth.
  • Ireland’s first sale of 10-yr government bonds since its 2010 bailout is a sign of the gradual healing in Europe’s financial sector.
  • The US will grow 1.5 to 2 percent in the next 12 months. The only thing stopping the growth rate increasing to 3 percent by the end of 2013 is uncertainty caused by congressional dysfunction.

Bill Gross at Pimco says the US is moving toward a 3 percent growth rate in 2013 because of the US housing recovery.

Read the full article at http://www.bloomberg.com/news/2013-03-13/europe-to-contract-as-much-as-1-5-el-erian-says-tom-keene.html

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