UPDATE 1-Merkel, Lagarde-global economic recovery uncertain

* Global economic recovery uncertain

* Eurozone must continue reforms

* Emerging states should loosen monetary, fiscal tightening

(Adds press conference quotes)

BERLIN, Oct 30 (Reuters) - Global economic recovery remains uncertain, making budget and structural reform necessary to revive growth, Germany said in a joint statement with the IMF and OECD on Tuesday.

``Because of modest growth prospects and considerable uncertainty, financial markets, investor and household confidence has not yet returned to pre-crisis levels,'' the statement said.

It came after talks in Berlin between the head of the International Monetary Fund Christine Lagarde, German Chancellor Angela Merkel and Angel Gurria, head of the Organisation for Economic Cooperation.

Lagarde said during a joint press conference governments of leading economies should continue fiscal consolidation at a ``sensible pace'' to address debt long term.

She also advised emerging economies to ``loosen their monetary and fiscal tightening to accommodate what growth there is.''

All three urged the euro zone to boost growth and competitiveness through reforms and the United States to present a convincing fiscal consolidation course. They welcomed efforts by some euro states to boost their competitiveness and bring down budget deficits.

``Nevertheless, further efforts, especially with respect to youth employment generation, structural reform and effective social protection systems, are urgently needed,'' the statement said.

Leaders also urged increased trade liberalisation as a key to stimulating global growth.

(Reporting by Stephen Brown and Alexandra Hudson; Editing by Ruth Pitchford, Ron Askew)