High risk of stagnation in the Euro area

“The euro area is grinding to a standstill and poses a major risk to world growth, as unemployment remains high and inflation persistently far from target,” the OECD said in the 96th edition of its Economic Outlook. More generally, the global economy remains stuck in low gear, but is expected to accelerate gradually if countries implement growth-supportive policies.  “Financial risks remain high and may increase market volatility in the coming period. Countries must employ all monetary, fiscal and structural reform policies at their disposal to address these risks and support growth,” OECD Secretary-General Angel Gurría said. Economy remains robust in the United States, Japan’s will continue to be impacted by consumption tax hikes, China’s and India’s will show diverging performance over the coming years; and Brazil’s and Russia’s will sail in rough seas.