Washington, Sep 23 (IANS): The International Monetary Fund (IMF) has urged global leaders to act in synchronism, as the world economy has entered into new dangerous phase, Xinhua reported Friday.

Speaking at the opening press conference that leads to the annual meetings of the IMF and the World Bank here in Washington, the IMF's Managing Director Christine Lagarde said: "We see downside risks on the horizon."

"It's a path to recovery, but it is narrower than three years ago," said Lagarde, adding, "We need to address the current crisis together."

The 187-member nation institution has drawn finance ministers, central bank governors and economists from all over the world during its week-long 2011 annual meeting.

The meeting comes at a moment when the sovereign debt crisis in the advanced economies, especially in the euro area, is considered on the edge of a new round of shock.

According to a report released by the IMF Wednesday, the current crisis has entered into a "political crisis," in which political leaders in the advanced economies seem unable to deal with their fiscal challenge as well as job crisis in a timely and effective way.

Lagarde said that all countries are "extremely connected" via financial channels and financial structure.

She stressed that "collective leadership" and political determination were needed at this critical moment.

"There is a way of hope," she said, adding that policy makers need to take longer view to manage the current crisis.