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The world economy is slowing due to a combination of factors such as debt problems in the eurozone and a weak U.S. housing sector, but is not heading for a new recession, said the head of the OECD.

”We do not see a return to recession,” said Angel Gurria, secretary general of the Organization for Economic Cooperation and Development (OECD) to press when asked if recent signs of slowing pointed to further weakening of the global economy. Gurria cited the political tensions in the Middle East, the problems of debt in eurozone economies, higher prices of raw materials, the devastating earthquake in March in Japan, and the complicated budget negotiations in the U.S. and some of the factors that explain the slowdown.

”There is recovery. There are positive numbers, although it will be a little slower than we thought originally,” he told a press conference in Seoul in the framework of a business conference. The comments came after recent data from around the world raised concerns that economic momentum was cooling in many developed countries and particularly in the United States, of which many exporting economies depend on.

Gurria added that the current negotiations between the leaders of the eurozone to help Greece avoid a debt default a technical approach needed to ensure that legal aspects are well covered and a strong private sector participation. “It has taken too long. The solutions are on the table. I think the stakes are very high” he added.

The head of the OECD said he expected raw material prices to remain high in real terms over the next decade, given supply and demand. “But it is also desirable because the best prices mean that farmers invest more, plant more, and produce more, and we need to increase productivity in the agricultural sector,” he said in a meeting with a small group of reporters. “The trend is upward for the next 10 years, which will reverse the trends we have seen so far,” added Angel Gurria.

As we know, the mission of the Organization for Economic Cooperation and Development (OECD) is to promote policies that improve economic and social welfare of people around the world. It provides a forum in which governments can work together to share experiences and seek solutions to common problems.

According to Gurria, the OECD works with governments to understand what drives economic, social and environmental change. “We measured productivity and trade flows and investment worldwide. We analyze and compare data to predict future trends. We set international standards in all kinds of issues, from security at chemical and nuclear plants to the quality of cucumbers”, said the Secretary-General of the entity, which is headquartered in Paris, France.

Recently, the OECD urged India to carry out “reforms” to the strong growth in its economy “impact on the entire population,” said the agency in New Delhi during the presentation of a study on this country. The report was presented on that occasion by the Secretary General of the OECD, who highlighted the way that India faced the global economic crisis, elusive “better than most”.

The Mexican national Gurria predicted economic growth for India, “even of double digits”, after being 8.5% in 2011 and 9.6% in 2010 - in successive years, but said that this improvement impact on all population should increase reforms. The Mexican economist highlighted the need to reduce the deficit and noted that total spending on subsidies is more than 9% of GDP, “so that subsidies should be restructured to be more effective and develop the skills of the poor.” “This growth will not be possible if India faces it alone,” said Gurria related to the topic.