Eurozone remains a threat to global economy: OECD

Eurozone remains a threat to global economy: OECDThe recession in Eurozone is still a threat to the world's economic recovery, the Organisation for Economic Cooperation & Development (OECD) warned on Wednesday.

The OECD hacked its forecast for the European Union, the 17-nation group that uses the euro, saying it will suffered a contraction of 0.6 per cent during the current year, after shrinking 0.5 per cent last year.

In its report six months back, the OECD had predicted a decline of 0.1 per cent for the eurozone; and this time previous year, it had projected a growth of around 1 per cent for 2013.

It also predicted that the eurozone's 12.1 per cent unemployment would likely to continue to soar further this year, before stabilizing at a very high level next year.

The leading international body warned that European Union was still plagued by weakly capitalized banks, public debt financing needs and exit risks.

The economy of the United States will keep on outpacing European Union, with estimated growth of 1.9 per cent this year and 2.8 per cent next year.

For global economy, the OECD projected a growth of 3.1 per cent for 2013 and 4 per cent for 2014.