The U.S. economy faces headwinds from weaker global growth and financial market instability and may slow as a result, Mohamed El-Erian, chief economic adviser at Allianz, told CNBC on Thursday.
"Either we get a handoff to something much better or the U.S. will slow and that is still an open question," the former co-chief executive of Pimco said at the Global Financial Markets Forum in Abu Dhabi.
El-Erian added that Wall Street has yet to price in increased political uncertainty stemming from the rise of protest politics in the U.S. and Europe.
Stateside, this trend has seen Donald Trump emerge as the front-runner to be Republican presidential candidate and Bernie Sanders challenge Hillary Clinton for the Democrat nod. Meanwhile, the British Labour Party has pushed to the left and the anti-immigration U.K. Independence Party has been a major influencing factor in the ruling Conservative party's decision to hold a referendum on its membership of the European Union.