OECD makes grim forecast for European growth

The Organisation for Economic Cooperation and Development (OECD) has warned that the UK and the eurozone could be entering a recession, and has cut its global growth forecast.

In the UK, the OECD predicted the economy would shrink in the fourth quarter by just 0.02% and by 0.14% in the first quarter of next year.

For the eurozone, the OECD's predictions are -1% this quarter, and -0.4% next.

Pier Carlo Padoan, the deputy secretary-general and chief economist at the OECD said "the situation is of particular concern in the eurozone" and warned of "contagion in the euro area".