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 PIMCO's view on the current state of the global and U.S. economy?

Describe the 'window of weakness' mentioned in the context of the global economy.

What factors contribute to the U.S. economy's vulnerability during low growth periods?

How does PIMCO characterize the likelihood of recovery versus recession?

What does the phrase 'knife edge' imply about the current economic situation?