(VOVworld) – The global economy is likely to have 'sub-par' growth with unacceptable rate of poverty and unemployment due to continued economic decline over the past 5 years.

Global economy likely to be affected by China's excessive growth in real estate, credit, and investment continue to unwind. (Photo: ndtv.com)

The International Monetary Fund’s warning is made in its report: “Global prospects and challenges” published on Thursday.

The report also warns that global growth could be derailed attributed to negative spillovers from China's growth transition; further falls in commodity prices; adverse corporate balance-sheet effects and funding challenges related to dollar appreciation and tighter global financing conditions; and capital flow reversals.

According to the IMF, emerging economies are projected to decline for the fifth year in a row in 2015 before strengthening next year and mainly in Brazil, Russia, and some countries in Latin America and the Middle East. Besides, strong domestic demand in India should also be a positive factor in 2016.

In its report, the IMF calls on G20 member countries to combine a policy upgrade and structural reforms to raise future growth with effective demand-side measures that support today's growth and maintain stability.