OECD says U.S. fiscal impasse threatens widespread recession

Reuters
U.S. President Obama speaks about the continuing government shutdown during White House news conference in Washington
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U.S. President Barack Obama speaks about the continuing government shutdown during a news conference from the White House Briefing Room in Washington, October 8, 2013. REUTERS/Kevin Lamarque

PARIS (Reuters) - OECD countries will suffer a recession as a group and emerging economies will see a downturn if Washington does not resolve its fiscal impasse, OECD chief Angel Gurria warned on Thursday.

"We still see the probability of failing to raise the debt ceiling as low, but as the government shutdown drags on, the level of concern is ratcheting up," Gurria said in a statement.

"If the debt ceiling is not raised - or, better still, abolished - our calculations suggest that the OECD region as a whole will be pushed back into recession next year, and emerging economies will experience a sharp slowdown," he added.

(Reporting by Leigh Thomas; Editing by Alexandria Sage)

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