The International Monetary Fund says the world economy is deep in the danger zone because of risks from the eurozone debt crisis.
The IMF downgraded its forecast of the global economy from 4% to 3.25% for 2012.
The organisation says the eurozone is set for a mild recession in 2012, though the United States is expected to have modest growth.
But emerging markets, such as central and eastern Europe and Asia, could be hit by the eurozone crisis.
The IMF says Europe's most pressing challenge is to restore confidence and put an end to the crisis in the eurozone.
