Pimco, home to the world's largest bond fund and run by co-founder Bill Gross, upgraded its assessment on U.S. economic growth on Wednesday, saying it now expects expansion to run between 2.5 percent and 3 percent in 2014.
In its global economic outlook, Pimco said its improved baseline expectation for real growth in the United States stems from "trends toward growth and spending in the consumer, corporate and public sectors.''
In December, Pacific Investment Management Co, better known as Pimco, had said the firm expected U.S. economic growth to run between 2.25 and 2.75 percent in 2014.
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"The global economy will likely experience steady, broad-based growth in 2014, thanks in no small part to the extraordinary expansion in central bank balance sheets in 2013,'' portfolio manager Saumil Parikh said in the report.
A spokeswoman said Parikh's report represents the views of Pimco, which oversaw $1.91 trillion in assets under management as of Dec. 31.
"Rising asset prices in combination with fading near-term fiscal uncertainties will drive global aggregate demand growth forward, adding stability to what has thus far been an on-again, off-again global recovery from the financial crisis of 2008,'' the report said.
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Pimco also upgraded its outlook on the euro zone, saying it now expects real economic growth in the region to measure between 1 percent and 1.5 percent.
"We expect the reduction in fiscal drag in the euro zone periphery will reinforce gradually improving credit conditions to drive aggregate demand growth from well below potential to up toward potential in the year ahead,'' Parikh said.