OECD warns that global recovery is weakening as euro crisis saps growth

PARIS – A new forecast says the world’s economic recovery will be “hesitant and uneven” next year, with Europe’s debt troubles dragging down growth in more vibrant economies.

The Organization for Economic Cooperation and Development says in a report Tuesday that the 17-country eurozone is expected to struggle further next year despite recent positive steps to stabilize the crisis.

It forecasts a 0.4 per cent contraction this year in the eurozone and 0.1 per cent fall next year.

Elsewhere, the OECD is predicting the U.S. economy will grow 2 per cent next year. The global economy is expected to grow 3.4 per cent too.

The Paris-based international agency warned the U.S. and Europe against cutting spending too sharply and too quickly, saying that could further hurt growth prospects.




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