Advanced economies, including the United States, must avoid pulling back stimulus too quickly given the weak global economic recovery and recent market volatility highlights key risks in some emerging markets, the International Monetary Fund said on Wednesday.
The IMF said there was scope for better coordination of central bank exit plans, something many emerging market policymakers have called for as the Federal Reserve has begun to wind back its U.S. support for the economy.
In a briefing note prepared for upcoming Group of 20 meetings, IMF staff said the outlook for global growth was similar to its last assessment in January, with growth of about 3.75 percent seen for this year and 4.0 percent in 2015.
(Read more: U.S. sees emerging market woes as focal point at G20)
But there were new risks from very low inflation in the euro zone and emerging markets needed sound economic policies and flexible exchange rates to weather turbulence.
"Capital outflows, higher interest rates, and sharp currency depreciation in emerging economies remain a key concern and a persistent tightening of financial conditions could undercut investment and growth in some countries given corporate vulnerabilities," the note said, ahead of meetings of G20 finance ministers and central bank governors in Sydney on Feb 22-23.