Euro zone heads for 1.2% growth

The OECD raised its growth forecast for the euro zone economy today to 1.2% this year but urged it to tackle financial weaknesses which could slow recovery and threaten monetary union.

The grouping of 30 developed nations forecast gross domestic product across the 16-nation bloc would rise by 1.2% in 2010 - raising its last estimate of 0.9% growth made in November. It forecast growth of 1.8% for 2011.

'A gradual euro zone recovery is under way driven by economic policy stimulus, a rebound in world trade and improving financial conditions, although there has recently been significant financial market volatility,' it said.

For more: RTÉ Business: Euro zone heads for 1.2% growth - OECD