The British economy is set to grow by 1.4% this year, according to the OECD Crisis still stalks the global economy with stagflation lurking and Japan set for recession even though overall activity is staging a moderate recovery, the OECD warned on Wednesday. The Organisation for Economic Cooperation and Development held its 2011 global growth forecast steady at 4.2 percent in its latest semi-annual Economic Outlook report, but warned of negative uncertainty.
Recovery is uneven, the OECD said, switching its forecast for Japan to show a recession of 0.9 percent owing to the short-term effects of the March earthquake and tsunami.

The OECD raised its 2011 forecasts for the United States to 2.6 percent and for the eurozone to 2.0 percent.
But dangers off stage include possible increases in oil and other commodities prices, a slow recovery in Japan, a steep slowdown in China, eurozone debt problems, and the unsettled fiscal situation in Japan and the United States. OECD economic forecasts
\"All this suggests that the global crisis may not be over yet,\" warned Pier Carlo Padoan, the OECD\'s chief economist, in his introduction to the report.
\"A concern is that, if downside risks interact, their cumulative impact could weaken the recovery significantly, possibly triggering stagflationary developments in some advanced economies.

Stagflation refers to a vicious mix of inflation coupled with low or stagnant growth.