Gap Between Economic Outlook for the U.S. and the Rest of the Globe Widest in 11 Years
October 18, 2018
As the American economy continues to fire on all cylinders, investment professionals are expressing increasing doubt about the economic prospects for the rest of the globe. Respondents to the Bank of America Merrill Lynch Fund Manager Survey for October show the most bearish outlook on the global economy since the beginning of the Great Recession.
A record 85 percent of respondents said that they felt the global economy is in the “late cycle” of growth. This marks the highest level of respondents who feel this way since November 2008. 38 percent of the investment professionals surveyed said they expect the global economy to decelerate over the next year.
This survey comes in the wake of the International Money Foundation cutting its outlook for the world economy to 3.7 percent for 2018-19. At the same time, U.S. GDP rose by 3.2 percent in the first half of the year, with the Atlanta Fed predicting 4 percent growth for Q3.