OECD warns risk of 'severe recession' in eurozone

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by Laura Matovina

PARIS (AP) -- The Organization for Economic Cooperation and Development's top economist says the 17-country eurozone risks falling into a "severe recession" and 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 says the eurozone is "close to" the possible scenario of a 2 percent economic contraction this year that the Paris-based think tank laid out as its worst-case scenario last November.

Padoan's comments come as the OECD releases its twice-yearly global economic outlook Tuesday. The organization now forecasts a longer and deeper contraction in the eurozone than in its November report, with the eurozone economy expected to shrink in 2012, and only manage a feeble recovery in 2013.

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