In a mid-year health check on the world economy, the IMF also cautioned that the productive capacity of a number of emerging-market economies such as those of China, India and Brazil, might be lower than previously believed and growth might disappoint.

It shaved its 2013 forecast for global economic growth to 3.9% from the 4.1% it projected in April, trimming projections for most advanced and emerging economies. It left its 2012 forecast unchanged at 3.5%.

"Downside risks to this weaker global outlook continue to loom large," the IMF said in an updating of its World Economic Outlook.

"The most immediate risk is still that delayed or insufficient policy action will [worsen] the euro-area crisis."

The global lender said advanced economies would grow by only 1.4% this year and 1.9% next year.

Africa's growth is still expected to be a robust 5.4% this year and 5.3% next year as the region remains relatively insulated from external financial shocks.

The IMF cut its growth forecast for the crisis-hit eurozone to 0.7% next year. It maintained its projection of a 0.3% contraction this year.

It said it believes that Spain's economy will shrink this year and next.

The fund urged the creation of pan-European deposit insurance and of a mechanism to save failing banks.