Europe Offers Stability Amid Global Volatility

Authored by Nicola Mai and Saurabh Sud, PIMCO’s latest outlook examines Europe’s muted growth prospects alongside its resilience and investment potential.

• GDP growth expected to slow to ~0.5% over five years due to weak demographics, lagging technology, and high energy costs.

• Political cohesion, fiscal cooperation, and ECB support underpin monetary union stability, with Bunds and diversified euro area sovereigns offering attractive diversification.

• High-quality corporate credit, especially in investment grade, remains compelling for risk-adjusted returns with lower volatility than equities.

Explore the full report for in-depth strategies and positioning insights for navigating Europe’s stable but subdued landscape.