After averting a severe depression two years ago, industrial nations risk losing the recovery, the chief executive of the world's largest bond investor says.
Mohamed El-Erian, head of Pacific Management Investment Co., or Pimco, says if these nations are not careful they risk slipping into a lost decade of low growth, high unemployment and welfare destruction.
El-Erian told an audience at the International Monetary Fund on Sunday the crisis management skills demonstrated by the Group of 20 nations and international financial institutions during the 2008-2009 crisis were highly successful in providing a floor for economies around the
world.
Now, he said the onus is on governments to minimize risks to the economy or inertia will develop.