El-Erian Says EM Growth Facing Headwinds

Emerging markets have come “completely unhinged,” and their struggles will likely drag on growth in the United States and Europe, widely followed market watcher Mohamed El-Erian said Thursday.

On CNBC’s “Fast Money: Halftime Report, the Allianz economic advisor said solid economic trends in the U.S. may not be enough to offset sagging growth in other pockets of the world.

“It’s not that powerful to pull everybody out,” he said, adding that emerging market troubles could drag Europe into a recession.

El-Erian’s remarks follow similar outlooks from World Bank President Jim Yong Kim and IMF Managing Director Christine Lagarde. Both told CNBC this week that emerging markets faced significant headwinds.

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via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza