The global economic recovery has weakened with rising financial turbulence in world markets, the International Monetary Fund (IMF) said Wednesday.
The lending agency said economic growth in advanced economies is at a modest level, while weakening potential growth in some countries hold back financial recovery in other nations.
Moreover, the IMF listed China's transition to a more balanced growth, troubles in emerging markets and decline in commodity prices as factors that worry the global economy.
"Strong policy responses both at national and multilateral levels are needed to contain risks and propel the global economy to a more prosperous path," the Fund advised.
The IMF stressed that the global economy is highly vulnerable to adverse shocks, and added that financial market turbulence and asset price declines have tightened financial conditions in advanced economies and, if persistent, could further weaken growth."
In addition, falling oil prices could further destabilize oil exporting countries, while importers' oil demand is lower than expected, which decrease global growth, adding to the current low-inflation environment.
"Finally, shocks of a non-economic origin—related to geopolitical conflicts, terrorism, refugees, and global epidemics—loom over some countries and regions, and, if left unchecked, could have significant spillover impacts on global economic activity," the IMF added.
"Bold multilateral actions" are needed to boost economic growth and minimize risks, and pointed to the G20.
"To support global activity and contain risks, the G20 must act now to implement forcefully the existing G20 growth strategies and plan for coordinated demand support using available fiscal space to boost public investment and complement structural reforms," it said.