OECD issues stark warning on global economy

The Organization for Economic Cooperation and Development says policy makers around the world must "be prepared to face the worst," as the economic impact of Europe's debt crisis threatens to spread around the developed world.

The Paris-based OECD says in its latest Economic Outlook that continued failure by EU leaders to stem the debt crisis that has spread from Greece to much-bigger Italy "could massively escalate economic disruption" and end in "highly devastating outcomes."

Unbalanced global recovery better than balanced recession: China

The bi-annual report released on Monday recommends urgently boosting the EU bailout fund and calls on Europe's central bank to do more to stem the crisis.