THE International Monetary Fund (IMF) has warned again of a weakening global economic recovery despite government efforts to stimulate growth.
The global economy is likely to grow at a slower rate than previously forecast over the next two years, the organisation said in its latest report.
It said it now expected the eurozone to remain in recession in 2013, having previously predicted growth. The UK's growth forecasts have also been revised down.
The IMF said continued problems in the eurozone were weighing on the global economy.
"The euro area continues to pose a large downside risk to the global outlook," the IMF report said.
"In particular, risks of prolonged stagnation in the euro area as a whole will rise if the momentum for reform is not maintained." The eurozone's economy is now forecast to shrink by 0.1 per cent this year. Just three months ago the IMF had forecast 0.2 per cent growth. The IMF now forecasts that the world economy to grow by 3.5 per cent this year and 4.1 per cent in 2014, 0.1 percentage points lower than stated in October's forecasts.