The International Monetary Fund on Tuesday predicted the global recovery would strengthen this year as output in richer nations picked up, but it warned of rising risks in emerging economies.
In its latest global economic snapshot, the Washington-based IMF said better policies were needed to raise the world's productive capacity and avoid a prolonged period of sluggish growth.
Global output should expand 3.6 percent this year, slightly lower than forecast in January, and grow 3.9 percent next year, the IMF said in its twice-yearly "World Economic Outlook."
But the number masks an increasing divergence among countries. While less fiscal austerity should help unshackle growth in the United States and Europe, emerging markets are likely to grow more slowly than thought just a few months ago due to tighter financial conditions, the IMF said.
Geopolitical risks have also entered the picture because of the conflict between Russia and Western countries over Ukraine.