(Bloomberg) -- Pacific Investment Management Co., which manages the world's biggest bond fund, predicted the global economy will slow next year.
The Newport Beach, California-based Pimco said it expects global growth of 1.5 percent to 2 percent next year after 2.2 percent in 2012, according to a report on its website by managing director Samuel Parikh.
"While we do not expect recessions across all developed countries in 2013, we certainly would caution that the probability of more widespread recessions has increased, given the coordinated slowdown in global aggregate demand we are witnessing across the world," Parikh said.
The U.S. economy will grow 1 percent to 1.5 percent next year with "downside" risks and the euro zone will shrink between 1 percent and 1.5 percent, he said. Global inflation will slow to 2 percent to 2.5 percent from 2.8 percent in 2012, the report said.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access