Eurozone growth forecasts cut by OECD

<p>The OECD has revised its growth forecasts for the eurozone.</p>

The eurozone's economic growth forecast has been revised downwards by the Organisation for Economic Co-operation and Development (OECD).

It now says the eurozone will shrink by 0.6 per cent this year, leaving much of the continent in recession. France re-entered recession earlier in the year after its economy shrank in Q1.

The organisation's chief economist Pier Paolo Padoan told Reuters that the eurozone is still an area of concern for the body.

"Europe is in a dire situation. We think that the eurozone could consider more aggressive options. We could call it a eurozone-style [quantitative easing]," he said.

The economic growth forecast for the UK was revised down to 0.8 per cent growth this year and 1.5 per cent in 2014, while the OECD stated average growth across its members will be 1.2 per cent this year and 2.3 per cent next year.

Data released by the Office for National Statistics in the UK showed the country's economy grew by 0.3 per cent in the first quarter of the year.

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