The eurozone may be entering into a “stagnation trap”.
"The euro area as a whole, and in particular the vulnerable countries, seems to be most likely to be affected by persistent stagnation tendencies," a report from the Organisation for Economic Cooperation and Development said.
Potential growth could be being hindered by insufficient economic stimulus which could also be leading to deflation in the region.
The GDP in the eurozone is still below what it was just before the financial crisis struck, whereas those of the UK and the US have surpassed theirs, the market economy group said.
Growth in the euro area "slumped as 2014 wore on", it said, and "will remain weak because of still-high public and private debt, tight credit conditions and high unemployment".
It forecasts growth of 0.6% in 2015 followed by 1% in 2015. This is slightly below what the EU has predicted.
The OECD called for the European Central Bank (ECB) to introduce "additional stimulus measures to keep long-term interest rates constant over the coming two years" by stepping up asset purchases.
