OECD Reduces Growth Forecasts, Blames Euro Doubts: Economy

The Organization for Economic Cooperation and Development said growing doubts about the survival of Europe’s monetary union has caused global growth to stall and represents the main risk to the world economy.

The 34 OECD nations will grow 1.9 percent this year and 1.6 percent next, down from 2.3 percent and 2.8 percent predicted in May, the Paris-based organization said in its twice-annual global economic outlook released today. In a separate report, Morgan Stanley cut its forecast for 2012 global growth.