The International Monetary Fund (IMF) released its report "Global Prospects and Policy Challenges" prepared for the G20 summit. The IMF said that global recovery weakened further due to increasing financial turbulence and falling asset prices.

"Growth in advanced economies is modest already under the baseline, as low demand in some countries and a broad-based weakening of potential growth continue to hold back the recovery," it said.

"Adding to these headwinds are concerns about the global impact of China's transition to more balanced growth, along with signs of distress in other large emerging markets, including from falling commodity prices," the fund added.

The report said that the global economy was "highly vulnerable to adverse shocks".

The IMF noted that G20 countries should coordinate their stimulus measures to boost the global economy.

The IMF cut its global growth forecast in January to 3.4% from 3.6%. The fund pointed out that further cut is possible in April.