Economics
Pimco’s Fels Says Worst Is to Come With Recession Forecast
- U.S., Europe have ‘distinct possibility’ of first-half slumps
- Second-half recovery may be hurt by ‘cracks’ in credit cycle
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The U.S. and Europe face the “distinct possibility” of a technical recession in the first half as the coronavirus outbreak dampens demand and supply and drives investors to safe havens, according to Pimco’s Joachim Fels.
“The worst for the economy is still to come over the next several months,” Fels, global chief economic adviser at Pacific Investment Management Co., wrote in a note to clients, which also cited concerns including a slump in China’s manufacturing and a weaker market for travel-related services.