OECD Cuts Growth Forecasts for Eurozone and U.S. on Weak Recovery

The Organization for Economic Cooperation and Development is slashing growth forecasts for some of the largest developed regions, including the eurozone and the U.S. One big reason: the lack of a robust recovery in Europe. The Paris-based institute now expects Eurozone's 18 member countries to grow less than a percent this year overall and the U.S. to expand just slightly above two. It said, "The global recovery from the crisis has been inadequate in several ways. Economic slack has persisted, potential growth has slowed, and inequality has risen." The OECD calls the eurozone the most worrisome threat to global growth prospects. Low inflation rates led to a dismal employment situation and it believes some countries, such as Italy, will not see any growth in the short term at all. The European Central Bank recently announced a stimulus program, but the OECD thinks that's not enough and calls for a larger scale. The OECD is a little less worried about the U.S. It expects output from the U.S. to grow three times as fast as the eurozone next year.