Crisis in eurozone renders recovery fragile. - The global economy is gradually picking up but recovery is fragile and varies greatly from region to region. It may also be compromised by the eurozone crisis, according to the latest edition of the OECD Economic Outlook (Organisation of Economic Cooperation and Development), published on 22 May this year. In the OECD zone, GDP is expected to slow from an annual rate of 1.8% in 2011 to 1.6% in 2012, before recovering to 2.2% in 2013. OECD Chief Economist Pier Carlo Padoan states: “The crisis in the eurozone remains the single biggest downside risk facing the global outlook.” Taking each region separately: (1) In the United States, private sector demand is expected to boost activity by 2.4% this year and by a further 2.6% in 2013; (2) in Japan, GDP is expected to grow by 2% in 2012 and by 1.5% in 2013; while (3) in the eurozone, GDP is expected to contract by 0.1% this year before picking up to reach 0.9% in 2013. In most emerging economies, activity remains strong, but policy challenges vary with inflation acting as a drag on real incomes in some, while it remains subdued in others. Lower inflation provides policy space in some countries that could be used to sustain activity. (IL/transl.jl)