The Organization for Economic Cooperation and Development (OECD) forecasts Europe will remain in an economic slump this year, despite the global recovery led by the U.S. and Japan.

The OECD said Thursday that following the global economy's second half contraction last year, it is recovering in the first quarter with the U.S. and Japan showing signs of a rebound.

The report predicted that the U.S. will see its economy grow three-and-a-half percent and Japan three-point-two percent in the first quarter. The report added that the two countries will likely lead global economic recovery as they are expected to post growth in the two percent rage in the second quarter.

However, the report said that Europe will see an economic slump or recession this year, as the gap between Germany and other countries is growing again.

The OECD said that the European Central Bank should lower its key interest rate to support bank loans to stimulate the economy.