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Global economy on recovery path, risks remain, says IMF’s Lagarde

The global economy has stepped back from the brink of danger and signs of stabilisation are emerging from the euro zone and the US, but high debt levels in developed markets and rising oil prices are key risks ahead, the IMF said on Sunday.

"The global economy may be on a path to recovery, but there is not a great deal of room for manoeuvre and no room for policy mistakes," IMF managing director, Christine Lagarde, said in a speech in Beijing.

She said signs of stabilisation were emerging to show that policy actions taken in the wake of the global financial crisis were paying off, that US economic indicators were looking a little more upbeat and that Europe had taken an important step forward in solving its crisis with the latest efforts on Greece.