Investors are pessimistic about global growth expectations with 53% forecasting a weaker economy over the next 12 months, versus 45% in August, Bank of America's September fund manager survey on Tuesday showed.

The consensus opinion is that global economy gets weaker next 12 months, the survey showed.

Meanwhile, expectations that China's economy would grow stronger slumped to zero from 78% in BofA's February 2023 survey.

Also, Chinese real estate has risen to the most likely source of a global systemic credit event among 33% of survey participants, overtaking US and EU commercial real estate at 32%.

Most fund managers (40%) see the biggest tail risk in high inflation keeping central banks hawkish. Worsening geopolitics was the second biggest concern at 14% while AI/tech bubble and a China real estate bust were the lowest at 10% and 8% respectively.

(Writing by Brinda Darasha; editing by Seban Scaria)
 
brinda.darasha@lseg.com