OECD warns of European recession

The 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.

The group also revised down its forecast for global economic growth to 3.8% this year and 3.4% next year.

However it warned that a 'negative event' in the eurozone could cause a global contraction.

The Organisation for Economic Cooperation and Development represents wealthy countries such as those within the eurozone, the US and Japan.

"More than usual, world economic prospects depend on events," it warned.