PARIS - THE eurozone economy will be in recession at the end of 2008 and is likely to contract 0.5 per cent in 2009, the OECD said on Thursday.

The Organisation for Economic Cooperation and Development, the Paris-based grouping of the world's 30 most developed-countries, said the eurozone will show negative growth in the final two quarters of 2008.

For all of 2008, however, growth is expected to come to 1.1 per cent.

The eurozone economy will not begin to grow again until the third quarter of 2009, when it should expand 0.1 per cent. But for the full year, the area's economy will show a contraction of 0.5 per cent.

In 2010, economic growth in the euro area should be 1.2 per cent, according to the OECD. --AFP