In terms of economic growth, PIMCO originated the famous phrase the 'new normal.'

The quote by Bill Gross, “In terms of economic growth, PIMCO originated the famous phrase the 'new normal,'” refers to a pivotal shift in how economists and investors viewed the global economy following the 2008 financial crisis. Gross, the co-founder of PIMCO (Pacific Investment Management Company) and one of the world’s most influential bond investors, coined the term “new normal” to describe a prolonged period of sluggish economic growth, high unemployment, and low interest rates that he believed would follow the crisis. The phrase gained wide acceptance across financial and policy circles.

By calling it “famous,” Gross acknowledges the widespread impact the term had on economic discourse and market strategy. The “new normal” challenged assumptions that economies would quickly bounce back to their pre-crisis trajectories. Instead, it suggested that investors and governments needed to adjust expectations and prepare for a world where stagnation and uncertainty were more persistent features of the economic landscape.

The origin of the quote lies in PIMCO's investment outlooks published around 2009–2010, in which Gross and his colleagues, including Mohamed El-Erian, elaborated on this concept. Their prediction marked a shift in investment philosophy, advocating for more cautious, diversified approaches in a world where the old models of growth and recovery no longer applied. It became a guiding framework for thinking about monetary policy, debt, and market behavior in the post-crisis era.

Ultimately, Gross’s quote is a reminder of how influential financial thought leaders can shape economic narratives. The term “new normal” not only became part of the global financial vocabulary but also reflected a profound recalibration of expectations about long-term economic health. It continues to influence debates on growth, inflation, and the role of central banks in managing future crises.