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OECD warns euro area still source of risk, sees 2014 growth

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(Globalpost/GlobalPost)

LISBON (Reuters) - The European common currency area remains "a considerable source of risk" even though the systemic risk from its debt crisis is scaling back, the Organisation for Economic Cooperation and Development's chief economist said on Tuesday.

The OECD's Pier Carlo Padoan told a conference in Lisbon positive economic growth in the euro zone should return only in 2014, expecting growth to be still negative this year despite a recovery in many countries, including Portugal.

He said that while pursuing structural fiscal consolidation in 2014, euro zone countries should allow automatic stabilizers to work and focus on fighting high unemployment rates.

(Reporting By Daniel Alvarenga and Sergio Goncalves, writing by Andrei Khalip)

http://www.globalpost.com/dispatch/news/thomson-reuters/130924/oecd-warns-euro-area-still-source-risk-sees-2014-growth