MW: OECD: Euro debt crisis key risk to global economy
By MarketWatch
LONDON (MarketWatch) -- The Organization for Economic Co-Operation and Development (OECD) indentified the euro-area sovereign debt crisis as the "key risk to the world economy" in its latest Economic Outlook published Monday. Chief Economist Pier Carlo Padoan said "decisive action" was needed to stem contagion, including a substantial increase in the capacity of the European Financial Stability Facility (EFSF) and greater support from the European Central Bank. The OECD estimates growth in gross domestic product across its 34 member nations to decline from 1.9% this year to 1.6% in 2012, but expects a rebound to 2.3% in 2013. Unemployment levels will hold steady at 8% for the next two years, it said. In the euro area, growth is expected to slow from 1.6% this year to 0.2% in 2012 before recovering to 1.4% in 2013.
