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Eurozone woes cast shadow over world economy

Eurozone woes cast shadow over world economy
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The eurozone debt crisis is worsening the outlook for major developed world economies according to the Organisation for Economic Cooperation.

Updating its economic forecast the OECD sees growth of just 1.4 percent for the Group of Seven economies as a whole, with European countries lagging significantly.

OECD chief economist Pier Carlo Padoan told euronews: “The euro area is going into a recession situation and perhaps, and more importantly, the euro area crisis its spreading negatively to confidence in the United States. So, the whole global economy shows a worse pictures with respected to three or four months ago.”

The OECD cut its growth forecasts for Germany, Italy and France and said eurozone countries carrying out painful reforms and slashing their budgets should not take a recent fall in borrowing costs as a sign to ease up or otherwise risk squandering efforts made so far.