By Jonathan Davies

The eurozone may be stuck in a period of stagnant growth, according to the Organisation for Economic Co-operation and Development (OECD).

Although there is potential for growth, the OECD said a lack of policy stimulus could dent it and increase the risk of deflation.

"The euro area as a whole, and in particular the vulnerable countries, seems to be most likely to be affected by persistent stagnation tendencies," OECD said.

It said growth in the eurozone "slumped as 2014 wore on" and "will remain weak because of still-high public and private debt, tight credit conditions and high unemployment".

The market economy group forecast inflation of 0.6% for the eurozone next year and 1% in 2016, which is ahead of the EU's own predictions.

The UK and US are expected to grow at much faster rates over the next two years. At an annual rate, the UK economy is growing by 3% and has been since the second quarter of 2013. And the OECD expects even quicker growth in the next two years.

The US economy is set to grow by 2.2% in 2014 and 3.1% in 2015.

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