Pacific Investment Management Co.'s Chief Executive Officer Mohamed A. El-Erian said U.S. economic conditions are “terrifying” given that the nation's is coming out of recession.
The odds of the U.S. returning to recession are one-third to half, Mr. El-Erian said in a Bloomberg Television interview with Betty Liu.
The economy in the U.S. expanded less than previously estimated in the third quarter, reflecting a drop in inventories that points to a pickup in growth as 2011 comes to a close.
Gross domestic product climbed at a 2% annual rate from July through September, less than projected and down from a 2.5% prior estimate, revised Commerce Department figures showed Tuesday in Washington. The median forecast of 81 economists surveyed by Bloomberg News called for no revision. Excluding stockpiles, so-called final sales climbed 3.6%, the most since last year's fourth quarter.
PIMCO's $244 billion Total Return Fund, the world's largest mutual fund, has returned 2.3% in the past year, lagging behind 79% of its peers, according to data compiled by Bloomberg. Over the past five years, the bond fund has returned 7.7% on average, topping 97% of rival funds.