Eurozone ‘at risk from oil price shock’

The eurozone economy is suffering chronically weak demand, is more vulnerable than the US to an oil price shock, and could be at risk from deflation, the Organisation for Economic Co-operation and Development warned yesterday.

In his latest global economic assessment, Jean-Philippe Cotis, the OECD’s chief economist, said signs of a pick-up in European economic activity could not be described as “anything other than a technical recovery at this stage”, although some recent German investment data had been more encouraging. Monetary policy needed to be “highly accommodative”, he said.

Financial Times