The International Monetary Fund (IMF) has said the world's economy is deeply into the danger zone because of risks from the eurozone.

The IMF predicts the global economy will grow by 3.25% in 2012, down from an earlier forecast of 4%.T

he growth forecast for the UK economy has been cut to 0.6% from 1.6%.

But the euro zone is set for a mild recession in 2012, with GDP expected to shrink by 0.5%, compared with a previous forecast of 1.1% growth.