The fund said it was concerned about the continuing Greek debt crisis, the arguments over US deficit plans and the need to curb growth in Asia. But it said it expected global growth to remain on track, though it lowered its forecasts for the US and UK.

The IMF predicted that the world economy would grow at a rate of 4.3 percent in 2011 and 4.5 percent in 2012.

The fund called for greater political leadership in dealing with the eurozone debt crisis and the budget crisis in the US.

The IMF's latest forecasts came as it updated its assessments of financial stability, country finances and the global economy. Its last review was in April.

The fund warned that the continuing Greek debt crisis could destabilise the global financial system.

Many analysts believe Greece will not be able to pay back all the money it has borrowed. Greece was unable to pay its debts, other countries such as Spain or Portugal may also be affected.

At the same time, the IMF warned that European banks had not yet built up sufficient capital to withstand a further economic shock.

In the so-called "core" European countries, such as France and Germany, growth has exceeded expectations. The IMF raised its 2011 growth forecast for Germany to 3.2 percent from 2.5 percent.

This may help to mitigate some of the problems faced by other countries in the eurozone.