The OECD said Tuesday more stimulus is needed to pull the world economy out of a recession.

The world economy is now gripped by the worst recession in 50 years, the OECD said Tuesday, calling on governments to step up stimulus spending to spark a recovery in 2010 likely to be “muted” at best.”The world economy is in the midst of its deepest and most synchronised recession in our lifetimes, caused by a global financial crisis and deepened by a collapse in world trade,” OECD chief economist Klaus Schmidt-Hebbel wrote in a report.

The economies of the 30 industrialised members of the Organisation for Economic Cooperation and Development are projected to contract 4.3 percent this year before strengthening somewhat to show negative growth of 0.1 percent in 2010.| MORE ›