Global economy is set for sharp slowdown in 2013: OECD

 
Traders work on the floor of the New York Stock Exchange on Nov 20, 2012. Global growth is set for a sharp slowdown next year and the euro zone debt crisis "remains the greatest threat to the world economy at present", the OECD warned on Tuesday. -- PHOTO: REUTERS

PARIS (AFP) - Global growth is set for a sharp slowdown next year and the euro zone debt crisis "remains the greatest threat to the world economy at present", the Organisation for Economic Cooperation and Development (OECD) warned on Tuesday.

In its latest Economic Outlook, the OECD also cautioned that "the risk of a new major contraction cannot be ruled out" after a global slump in 2009. The report was drafted before the euro zone and the International Monetary Fund (IMF) unblocked almost 44 billion euros (S$69.8 billion) in emergency loans for Greece,

The organisation slashed its outlook next year for the 34-member OECD area, which includes most of the world's industrialised economies, to 1.4 per cent from a previously expected level of 2.2 per cent.

On a global level, the OECD cut this year's growth forecast to 2.9 per cent from 3.4 per cent, and its estimate for next year to 3.4 per cent from 4.2 per cent.

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