Eurozone Warned by OECD: ‘Severe Recession’ Looming

The 17-country eurozone risks falling into a "severe recession," the Organization for Economic Cooperation and Development warned on Tuesday. It called on governments and Europe's central bank to act quickly to keep the slowdown from dragging down the global economy.» E-Mail This     » Add to Del.icio.us

Pier Carlo Padoan, Chief Economist of the Paris-based Organization for Economic Cooperation and Development (OECD), predicts negative growth in the Eurozone this year and through much of 2013. He says a solution to the crisis will require a strong euro and better coordination between EU member states.  

A new recession stalks some rich countries and the eurozone crisis could deepen, the OECD warned on Thursday urging most central banks not to raise, and maybe to cut, interest rates."Growth is turning out to be much slower than we thought three months ago and the risk of hitting patches of negative growth going forward has gone up," OECD Chief Economist Pier Carlo Padoan said.In its latest analysis, the OECD insisted on the urgency for the eurozone to apply rescue action agreed in July and to tighten financial discipline.