OECD forecasts weak outlook to global economy

PARIS, Nov. 27 (Xinhua) -- The global economy is expected to make a hesitant and uneven recovery over the next two years with a slowdown or even recession hovering over the euro area, the Paris-based Organization for Economic Co-operation and Development (OECD) reported Tuesday.

"The global economic outlook has deteriorated again," OECD Secretary-General Angel Gurria said at the launch of the new Economic Outlook.

"The risk of a new major contraction cannot be ruled out. A recession is ongoing in the euro area," said OECD Deputy Secretary-General and Chief Economist Pier Carlo Padoan.

The main reasons for a slow recovery include private sector leveraging, fiscal consolidation, euro area crisis as well as EMEs (emerging market economies) slowdown, he said.

"The U.S. economy is growing but performance remains below what was expected earlier this year. A slowdown has surfaced in many emerging market economies, partly reflecting the impact of the recession in Europe," Padoan said.

"The euro area crisis remains the greatest threat to the world economy at present," the chief economist said.

The Economic Outlook report projected the world economy would grow by 2.9 percent this year and by 3.4 percent in 2013, down from an initial forecast of 3.4 percent and 4.7 percent respectively.

Recommended Features: Vibrant Opportunities amid Transition From 'Made in China' to 'Created in China' A Journey to Cultural Renaissance The Vision of A Pillar Industry China: A Fast-growing Force in IPR IPR in China: Local Roots Bearing Global Fruits A Decade of Fastest Development Eastern Boom Lightens Western Gloom Chinese firms 'potential Trojan horses'？