Global recovery has weakened further amid increasing financial turbulence and falling asset prices, according to a report by the International Monetary Fund (IMF) after a Group of Twenty (G20) meeting in China.

The report published on Thursday during the G20 Finance Ministers and Central Bank Governors meetings in Shanghai, which were held on Feb. 26-27, states, “Activity softened towards the end of 2015 and the valuation of risky assets has dropped sharply, especially in advanced economies, increasing the likelihood of a further weakening of the outlook.”

It continued, “Growth in advanced economies is modest already under the baseline, as low demand in some countries and a broad-based weakening of potential growth continue to hold back the recovery.”

The IMF said that “concerns about the global impact of China’s transition to more balanced growth, along with signs of distress in other large emerging markets, including from falling commodity prices,” add to the headwinds the global economy is facing.

It stipulated that “Strong policy responses both at national and multilateral levels are needed to contain risks and propel the global economy to a more prosperous path.”

“These developments point to higher risks of a derailed recovery, at a moment when the global economy is highly vulnerable to adverse shocks,” the report continued, adding that “Emerging market stress could rise more, also reflecting domestic vulnerabilities.”

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