Activity is expected to improve further in 2014 and 2015, largely on account of recovery in the advanced economies, said the report.
The IMF now projects global growth to be slightly higher in 2014, at around 3.7%, rising to 3.9% in 2015, however downward revisions to growth forecasts in some economies highlight continued fragilities, and downside risks remain.
In advanced economies, output gaps generally remain large and, given the risks, the monetary policy stance should stay accommodative while fiscal consolidation continues, in the view of the IMF.
The report goes on to note that in many emerging markets and developing economies, stronger external demand from advanced economies will lift growth, although domestic weaknesses remain a concern.
Some economies may have room for monetary policy support, but in many others output is close to potential, suggesting that growth declines partly reflect structural factors or a cyclical cooling and that the main policy approach for raising growth must be to push ahead with structural reform.
In some economies, there is a need to manage vulnerabilities associated with weakening credit quality and larger capital outflows, the report concluded.
