News Summary: Europe weighing on global economy

Associated Press

ECONOMIC WARNING: A leading international economic group warns that the global economy could easily slide back into recession if its major problems such as U.S. budget standoffs and Europe's lack of jobs fester.

THE OUTLOOK: The Organization for Economic Cooperation and Development said that the global economic recovery will be "hesitant and uneven" over the coming two years and that a new major contraction cannot be ruled out. Those comments come even as the world economy is expected to grow by 3.4 percent next year, up from 2.9 percent this year.

THE PROBLEMS: Countries like China, Brazil and India are expected to see growth pick up, while the more established economies remain stuck in a rut. The OECD said "the greatest threats to the world economy" lie in the 17-country eurozone, which continues to grapple with a debt crisis. It also downgraded its forecasts for the U.S. economy.

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