International Monetary Fund head Dominique Strauss-Kahn has said that China and developing Asian economies are leading a global economic recovery.

But he warned that countries should not exit from stimulus packages that have bolstered growth through huge amounts of government spending.

"We have to very cautious because this recovery remains very fragile," Mr Strauss-Kahn said.

He suggested that the IMF would raise its growth forecasts for this year.

The IMF is currently predicting the global economy will grow by 3.1% in 2010.

"Recovery in advanced economies has been sluggish," Mr Strauss-Kahn said. "The best indicator is private demand and employment."

"In most countries, growth is still supported by government policies. For as long as you do not have private demand strong enough to offset the need of public policy, you shouldn't exit."

He added that tackling high levels of government debt will be a priority for many governments.