The global economy will grow a faster than expected 4.2% this year, says the International Monetary¹ Fund (IMF).

国际货币基金组织称，今年全球经济增长将会超过预期的4.2%。

The IMF wants regulatory reform of financial institutions

However, recovery in many advanced economies remains² "tepid³（微温的，微热的） " and high government debt levels need to be addressed, the IMF said.

For this reason, governments must continue with economic stimulus⁴（经济刺激） measures this year, it added.

The IMF forecast the UK recovery would "continue at a moderate pace", with a weak pound helping⁵ exports.

The fall in the currency will help offset⁶（抵消，弥补） subdued⁷（被制服的，减弱的） domestic demand, it argued.

The comments were made in the IMF's latest World Economic Outlook.

Cutting debt

The fund expressed concerns about the continued shortage of bank lending, which it said was likely to remain subdued as banks built up their capital bases.

The body also raised concerns about the options available to governments to continue stimulating⁸ their economies.

Governments across the world have already reduced interest rates to record lows in order to stimulate⁹ demand.

"A key concern is that room for policy manoeuvres（策略，演习） in many advanced economies has either been exhausted¹⁰ or become much more limited," the fund said.

What governments can, and must, do, is make public their plans to cut debt levels, it argued.

"There is a pressing need to design and communicate credible¹¹ medium-term fiscal¹² consolidation¹³（巩固，合并） strategies.

"These should include clear time frames to bring down gross debt-to-GDP ratios over the medium-term, as well as contingency¹⁴（意外事故，可能性） measures if the deterioration¹⁵（恶化，退化） in public finances is greater than expected."

Governments should not start to cut spending until next year, the IMF said, apart from those countries with high debt levels that needed addressing now.

Greece, for example, has been forced into a series of spending cuts and tax rises in order to bring down its budget deficit¹⁶.

Bank tax

The IMF also said that governments must come to an agreement（达成协议） on regulatory reform of the banking¹⁷ sector¹⁸.

The fund has proposed that all financial institutions pay a bank levy¹⁹（征税，征兵） - initially²⁰ at a flat rate - and also a further tax on profits and pay.

The measures are designed to make banks pay for the costs of future financial and economic rescue packages.

The far-reaching proposals are likely to prove deeply unpopular with banks, BBC business editor Robert Peston says.