Full coverage: G20 Hangzhou Summit

Financial leaders from the Group of 20 nations have said they were heartened by a recent recovery in financial markets, but warned that global growth was "modest and uneven".

G20 finance ministers meeting in Washington say the global economy is growing moderately, but risks remain. China holds the rotating leadership position of the G20. Finance Minister Lou Jiwei represents the group.

"The global recovery continues, and the global markets have recovered most of the lost ground lost earlier in the year. However, growth remains modest and uneven, and the downside of risks and uncertainties to the global outlook persist," Lou said.

Earlier in the week, IMF head Christine Lagarde warned that economic instability in parts of the world could spread and impact more prosperous countries.

"There is a risk that middle class families and the poor will actually remain behind, which would embolden the voices of protectionism and fragmentation," Christine Lagarde said.

In a communique issued after the meeting, the G20 pledged to resist moves toward isolationism and protectionism- vowing to take steps to stabilize the global economy.

"We welcome the policy actions being taken by a number of G20 members to support growth and stabilize markets. We reiterate our commitment to using all policy tools -- monetary, fiscal, and structural -- individually and collectively, to foster confidence and the strength of growth," Lou said.

The communique warns that terrorism, geopolitical conflicts and the possibility of the UK leaving the European Union could all hurt or destabilize the world economy this year.