Report Warns of Slow Euro Zone Recovery
Sluggish growth and stubbornly high unemployment await the 12 countries that share the euro, according to a new OECD report.
The Organization for Economic Co-Operation and Developmen's (OECD) annual report on the euro zone projects growth of 1.5 percent this year, which should "gather steam" to 2.5 percent next year. However, the report warns that "income per capita is lower in the euro area than in the best performing OECD countries and the gap is widening." Moreover, the economic recovery is expected to be slower in the euro zone than in other parts of the world, according to the Paris-based body. "While it is not surprising that the euro area went into a downturn following the 1995-2000 upswing, it is striking that growth has been recovering much more hesitantly than in many other OECD countries," notes the survey. There are also notable gaps in income and growth between countries in the euro zone, says the OECD. "Economic performance across the individual economies has differed considerably with activity in German and Italy subdued, but strong in some smaller countries."