国际英语新闻:World economy to strengthen modestly in 2013, says IMF

"Comparing to where we were the same time last year, acute risks have decreased," said Blanchard. "But we should be under no illusion" as considerable challenges remain ahead, he added.

"If crisis risks do not materialize and financial conditions continue to improve, global growth could be stronger than projected," the IMF said.

"However, downside risks remain significant, including renewed setbacks in the euro area and risks of excessive near-term fiscal consolidation in the United States. Policy action must urgently address these risks," it cautioned.

The IMF also said that weaknesses in advanced economies will weigh on external demand, as well as on the terms of trade of commodity exporters.

Policy recommendations provided in the updated WEO report are largely the same as those in the previous version.

Risks of prolonged stagnation in the euro area as a whole will rise if the momentum for reform is not maintained, the IMF warned. Adjustment efforts in the periphery countries need to be sustained and must be supported by the core countries, including through full deployment of European firewalls, utilization of the flexibility offered by the fiscal compact, and further steps toward full banking union and greater fiscal integration.

The IMF underscored the need for developing countries to rebuild macroeconomic policy space. In China, ensuring sustained rapid growth requires continued progress with market-oriented structural reforms and rebalancing of the economy more toward private consumption, it noted.

The Fund also stressed that the priority for the United States is to avoid excessive fiscal consolidation in the short term, promptly raise the debt ceiling, and agree on a credible medium- term fiscal consolidation plan focused on entitlement and tax reform.