The Eurozone crisis is now the greatest threat to the world economy, according to the international think-tank the OECD, which today slashed its global growth forecasts.
It s also urged central banks to prepare for more monetary easing if politicians fail to come up with credible answers to the debt crisis.
The Paris-based body has forecast that the global economy would grow 2.9% this year, and expand by 3.4% next year.
This marks a sharp downgrade since its last estimate in May, of 3.4% for 2012 and 4.2% the following year.