The head of the International Monetary Fund has warned the global economy is at risk of being plunged into what she calls a lost decade.
Christine Lagarde says the debt crisis in Europe has resulted in an uncertain outlook for the global economy.
Speaking at the International Finance Forum in Beijing, Ms Lagarde said Asia is not immune to problems currently sweeping the eurozone.
She said while efforts to solve Europe's crisis are heading in the right direction, more needs to be done to restore confidence, the BBC reports.
"Our sense is that if we do not act boldly and if we do not act together the economy around the world runs the risk of a downward spiral of uncertainty, financial instability and potential collapse of global demand," she said.
The meeting of the International Finance Forum is expected to focus on the debt crisis in the eurozone, where Italy may be the next country to seek international help.
Borrowing costs in Italy have surpassed the level at which Portugal, Ireland and Greece sought bailouts.