No Double Dip In EMU; Weaker Euro Good News

There is no risk of a double-dip recession in the Eurozone, as the fiscal consolidation that financial markets are demanding will not have a significant impact on activity in the short to medium term, the chief economist of the OECD said in an interview published Wednesday.

Ahead of the publication of the OECD's spring Economic Outlook today at 8:45 GMT, Pier Carlo Padoan told the French daily Le Figaro that the "the weaker euro is good news for the economy in the near term. It will favor exports outside the Eurozone."

"The single currency was overvalued for too long," he added. The economist also called for an "adjustment" of other currencies, in particular the yuan. "A gradual revaluation of the Chinese currency, which would bring a redistribution of global demand, would be very beneficial for growth," he said.

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