World's growth is slowly improving as recovery in the United States gains some strength and dangers from Europe recede, but risks remain elevated and the gains are very fragile, the IMF said on Tuesday.
Another flare-up of the euro-zone sovereign debt crisis or sharp escalation in oil prices on geopolitical uncertainty especially Iranian nuclear issue could easily undermine confidence and disrupt the improving growth path for world economy, the IMF stated.
"With the passing of the crisis and some good news about the US economy, some optimism has returned. It should remain tempered," said Oliver Blanchard, the IMF's chief economist, in the latest World Economic Outlook.
"Even absent another European crisis, most advanced economies still face major brakes on growth. And the risk of another crisis is still very much present and could well affect both advanced and emerging economies," he further added.
The global economy is on track to expand this year by 3.50% and by 4.10% in the year 2013, up slightly from 3.30 and 3.9 percent GDP output respectively that the IMF had forecast in January,this year, when market concern was rampant that Greece could default and Italy and Spain were facing budget crises.