The global economy may be on a path to recovery as signs of stabilization emerge from the eurozone and the United States, managing director of the International Monetary Fund, Christine Lagarde, said on Sunday.

As the global economy struggles to recover, Lagarde also praised China's leadership and influence in contributing to global economic stability.

"The financial market conditions are more comfortable and recent economic indicators are beginning to look a little more upbeat Europe has taken an important step forward in solving its crisis with the latest efforts on Greece," Lagarde said in a speech in Beijing.

These signs showed that policy actions taken in the wake of the global financial crisis are paying off, she said.

"On the back of these collective efforts, the world economy has stepped back from the brink and we have cause to be more optimistic," she added.

However, Lagarde said: "Optimism must not lull us into a false sense of security. There are still major economic and financial vulnerabilities that we must confront."

Lagarde cited the still fragile financial systems as the first of major risks, and said the amount of eurozone public sector and bank rollover funding needed in 2012 was equivalent to about 23 percent of GDP.

Meanwhile, rising oil prices, high unemployment rates and the possible slowdown of emerging economies also posed threats to growth, the IMF chief warned.

Christine Lagarde, managing director of the International Monetary Fund, walks into a news conference held by the China Development Forum 2012 at the Diaoyutai State Guesthouse in Beijing on Sunday. Feng Yongbin / China Daily