The Assessment, presented in Paris by Chief Economist Pier Carlo Padoan on 6 September, says that the G7 economies are expected to grow at an annualised rate of just 0.3 percent in the third quarter of 2012 and 1.1 percent in the fourth. It warns that the continuing euro area crisis is dampening global confidence, weakening trade and employment and slowing economic growth for OECD and non-OECD countries alike (See the Chief Economist's presentation).

"Our forecast shows that the economic outlook has weakened significantly since last spring," Mr Padoan said. "The slowdown will persist if leaders fail to address the main cause of this deterioration, which is the continuing crisis in the euro area." The OECD projects that the euro area's three largest economies – Germany, France and Italy – will shrink at an annualised rate of 1 percent on average during the third quarter and at 0.7 percent in the fourth.

Read more on the website of the OECD