OECD warns of 'severe recession' in eurozone, cuts Ireland's forecast too

The 17-country eurozone risks falling into a “severe recession”, the Organisation for Economic Co-operation and Development warned today, as it called on governments and Europe’s Central Bank to act quickly to stop the slowdown spilling over into the global economy.

OECD chief economist Pier Carlo Padoan said the eurozone is “close to” the possible scenario of a 2% economic contraction this year that the Paris-based think-tank laid out as its worst-case scenario last November.