May 23, 2012
Eurozone woes could spread
PARIS (UPI) -- The Organization of Economic Cooperation and Development said Tuesday economic troubles in Europe could spill over beyond the eurozone.
"Failure to act today could lead to a worsening of the European crisis and spillovers beyond the eurozone with serious consequences for the global economy," the OECD said in a report that predicted an economic contraction in the eurozone in 2012 and growth of less than 1 percent in 2013.
Dropping previous predictions for the region for 0.2 percent growth in 2012 and 1.4 percent in 2013, the OECD forecast now stands at a 0.2 percent contraction for 2012 and 0.9 percent growth for 2013.
"With slow growth, high unemployment and limited room for maneuver regarding macroeconomic policy space, structural reforms are the short-run remedy to spur growth and boost confidence," OECD Secretary-General Angel Gurria said in a statement.
The OECD's Economic Outlook report said demand from the private sector will prop up the U.S. gross domestic product, which is now predicted to grow 2.4 percent in 2012 and 2.6 percent in 2013.
In Japan, the GDP is forecast to grow 2 percent in 2012 and 1.5 percent in 2013.
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