Allianz's Hofmann warns Euro growth will lag pre-crisis era

Allianz Global Investors has warned European growth will not return to pre-credit crisis levels for years to come.

Robert Hofmann, co-manager of the £997m Allianz RCM Europe Equity Growth fund, said he expected growth to lag previous years as the region worked through the Greek sovereign debt crisis and problems facing other economies. He said: “Growth in Europe will be lower than the normal rate for mature markets, on the back of reduced spending from governments and weakening middle class consumers. “Therefore the levels of GDP growth reached between 2002 and 2008 will not be repeated any time soon,” he said. With subdued growth and volatile markets expected in the near term, Hofmann is favo...