THE world should strengthen coordination to prevent a global overflow of liquidity and oppose all forms of protectionism amid the fragile economic recovery, Chinese Vice Premier Zhang Gaoli said yesterday in St Petersburg, Russia.

Countries "should improve coordination of their national macro-economic policies ... undertake more effective measures in a constructive, open and cooperative way to avoid a global overflow of liquidity and inflation for the sake of the stability of the international financial system," Zhang said in a keynote address to the three-day St Petersburg International Economic Forum.

Zhang said the global economy had shown some positive signs this year, but a host of uncertainties remained and the economic growth still lacked momentum.