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Europe the biggest threat to global economic stability


The eurozone crisis is the single biggest threat to the global economy, according to the Organisation for Economic Co-operation and Development.

The 17 nations that use the euro will see their economies shrink 0.1% this year, before rebounding to 0.9% growth next year, the OECD predicts.

By contrast, the US economy will expand by 2.4% this year and 2.6% in 2013.

The OECD also seemed to back calls by some Europeans to combine spending cuts with measures to boost growth.

"The crisis in the eurozone remains the single biggest downside risk facing the global outlook," said OECD chief economist Pier Carlo Padoan.

The organisation added: "Failure to act today could lead to a worsening of the European crisis and spillovers beyond the euro area, with serious consequence

Added: May-22-2012 Occurred On: May-22-2012
World News
Tags: europe, eurozone, euro, threat, world, economy, oecd, stability, growth, debt, economics, madness
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