Euro crisis ‘threatens world economy’

The eurozone crisis poses the single biggest risk to the global economy, with cutbacks in countries hardest hit by the crisis particularly vulnerable, the OECD warned.

The only glimmer of optimism for the Irish economy appeared to be the upgrading of growth expectations for the US, though UK growth is likely to be flat.

The Paris-based OECD,which represents 34 advanced economies, lowered its growth forecast for the eurozone to 0.1% this year and predicted an increase to 0.9% for next year — but this is provided the debt crisis is contained.