A report from the Organisation for Economic Co-operation and Development says insufficient policy stimulus could be undermining potential growth in the euro area and that may lead to deflation.
The OECD’s inflation forecasts of 0.6 percent for the euro area next year and 1.0 percent for 2016 are slightly more pessimistic than the EU’s own forecasts and the European Central Bank’s target of just below 2 percent.
Growth slumped as 2014 wore on said the report with predictions it will remain weak because of high public and private debt, tight credit conditions and high unemployment.
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