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OECD: Eurozone In Mild Recession, Global Economy Threatened

OECD Chief Economist Pier Carlo Padoan

OECD Chief Economist Pier Carlo Padoan

The Organization for Economic Cooperation and Development (OECD) has said the 17-member eurozone is in a mild recession and is now threatening the global economy.

In a report issued on November 28, the OECD said the euro zone debt crisis "represents the key risk to the world economy at present."

It warned that a "major negative event" -- an apparent reference to the possibility of one or more countries leaving the eurozone -- risks sending the United States, Japan, and other advanced economies into recession.

During the launch of the report in Paris, OECD chief economist Pier Carlo Padoan said "policymakers fail to see the urgency of taking decisive action to tackle the real and growing risks to the global economy."

"There is a risk of recession for France and for the eurozone in the scenarios which we refer to as the downside," he said "There is a risk of recession for all the countries in the eurozone if the downside scenario comes in its worst form."

The OECD represents the world's most advanced economies, including those in the eurozone, the U.S. and Japan.

compiled from agency reports