IMF urges central banks to protect 'highly vulnerable' global economy

Highlights 'derailed recovery'

The International Monetary Fund (IMF) has warned the global economy is "highly vulnerable" and has called for the world's leading economies to join forces to protect the real economy.

In a note prepared ahead of Friday's gathering of G20 finance ministers and central bank governors in Shanghai, the IMF said the global equity market has declined due to the heightened risk aversion following China's slowdown and a slump in commodity prices, according to the BBC. "Strong policy responses both at national and multilateral levels are needed to contain risks and propel the global economy to a more prosperous path," it said. "These development point to higher risks of a derailed recovery, at a moment when the global economy is highly vulnerable to adverse shocks. "To s...