The 17-country eurozone risks falling into a “severe recession,” the Organization for Economic Cooperation and Development warned on Tuesday, as it called on governments and Europe’s central bank to act quickly to keep the slowdown from dragging down the global economy.
OECD Chief Economist Pier Carlo Padoan warned the eurozone economy could contract by as much as two per cent this year, a figure that the Paris-based think-tank had laid out as its worst-case scenario in November.
In its twice-yearly global economic outlook, the OECD — which comprises the world’s most developed economies — said its average forecast was for the eurozone economy to shrink 0.1 per cent this year and grow a mere 0.9 per cent in 2013.
