The IMF’s First Managing Director, John Lipsky, has stated that he believes the world economy will continue to recover moderately but will face challenges along the way, such as the need for medium-term fiscal consolidation.

Mr Lipsky, at meeting of G20 finance and central bank deputies in Gwangju, south of Seoul, has told reporters the IMF is confident that there is a moderate recovery underway globally.

He said delegates at the meeting were in agreement on the recovery, but were also aware of risks and challenges along the way.

He said: "Things seem to be moving more or less in line with our forecast."

South Korea will host the November 11-12 summit of G20 leaders in Seoul, in which plans will be discussed for putting the world economy on a balanced and sustainable growth path.