The International Monetary Fund said that the economic conditions worldwide are recovering at a faster pace than expected. IMF said that the global economy will grow by 4.25% this year. Earlier in January this year, IMF forecasted a growth of 3.9% for the year. However, IMF also warned that many advanced economies could be left behind if they fail to address the lingering financial-sector weakness.

The IMF said in its latest World Economic Outlook that it is quite optimistic about the growth of global economic recovery for the next two years. IMF said that the emerging markets would expand much faster than the advanced economies.

"The world economy is poised for further recovery but at varying speeds across and within regions," said IMF. "Repairing and reforming the financial system remains a top priority for advanced economies."

IMF suggested the advanced economies to address the high government debt levels in order to maintain the growth levels with the global economy. The fund also advised that the governments of such economies must continue with economic stimulus measures this year.

"In most advanced economies, fiscal and monetary policies should maintain a supportive thrust in 2010 to sustain growth and employment," said IMF.