Global economic recovery is on track, helped by a stronger US economy, but threats ranging from high oil prices to European sovereign debt crises could yet combine to create a bout of stagflation, the Organisation for Economic Co-operation and Development (OECD) said on Wednesday. In its twice-yearly economic outlook, the body forecast world growth would ease to 4.2% this year from 4.9% in 2010 before accelerating to 4.6% in 2012. OECD also cited a slow recovery in Japan as a possible threat to its economic partners, especially if global supply chains remain disrupted as a result.
Also See | Recovery On Track, Risks Remain (PDF)
Graphic by Sandeep Bhatnagar/Mint