SAN DIEGO—“Growth will remain relatively low but critically will be stable.” Those thoughts are according to Mohamed A. El-Erian, chief economic advisor at Allianz, and former CEO and co-CIO of PIMCO. “The US will grow at 2% to 2.5%. Japan will be in the 1% to 1.5% range and China will be at 5% to 6%.”
El-Erian, who spoke during the “What's Ahead in the Global Economy” general session at MBA's CREF/Multifamily Housing Convention and Expo 2017, said that the global economy is stable and that is the first element the markets love.
“Central banks have been critical to allow you to continue doing what you are doing,” he said. “They help to make sure market instability doesn't derail the economy.”
He explained that the group of central banks will be willing and able to repress finance volatility so markets continue towards growth rather than retract from growth. “Politics will remain noisy but will not fundamentally contaminate central banks.”
El-Erian said that the anti-establishment movements will not go away and will continue to make the political debate noisy. “Fundamentally though, they won't impact central banks and won't derail the markets.”
He added that “We are in a place that is a low but stable equilibrium that allows balance sheets to continue to recover. Baseline is that things will be a little bit better than last year and the balance of risk is to the upside.”
And it is good news, he explained. “It implies an orderly evolution. It will continue to encourage an internal rotation towards the financial sector. The Fed will be able to slowly normalize rates without disrupting the finance markets.”
Keep checking back with GlobeSt.com this week for more coverage from the MBA's CREF/Multifamily Housing Convention and Expo 2017.
SAN DIEGO—“Growth will remain relatively low but critically will be stable.” Those thoughts are according to Mohamed A. El-Erian, chief economic advisor at Allianz, and former CEO and co-CIO of PIMCO. “The US will grow at 2% to 2.5%. Japan will be in the 1% to 1.5% range and China will be at 5% to 6%.”
El-Erian, who spoke during the “What's Ahead in the Global Economy” general session at MBA's CREF/Multifamily Housing Convention and Expo 2017, said that the global economy is stable and that is the first element the markets love.
“Central banks have been critical to allow you to continue doing what you are doing,” he said. “They help to make sure market instability doesn't derail the economy.”
He explained that the group of central banks will be willing and able to repress finance volatility so markets continue towards growth rather than retract from growth. “Politics will remain noisy but will not fundamentally contaminate central banks.”
El-Erian said that the anti-establishment movements will not go away and will continue to make the political debate noisy. “Fundamentally though, they won't impact central banks and won't derail the markets.”
He added that “We are in a place that is a low but stable equilibrium that allows balance sheets to continue to recover. Baseline is that things will be a little bit better than last year and the balance of risk is to the upside.”
And it is good news, he explained. “It implies an orderly evolution. It will continue to encourage an internal rotation towards the financial sector. The Fed will be able to slowly normalize rates without disrupting the finance markets.”
Keep checking back with GlobeSt.com this week for more coverage from the MBA's CREF/Multifamily Housing Convention and Expo 2017.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
