The Chinese economy is recovering well from the COVID-19 pandemic, but it still requires appropriate support and steps to ensure inclusive and "green" growth, according to a report released on Friday by the International Monetary Fund (IMF).

"Executive Directors highlighted that China’s recovery from the COVID-19 shock is well-advanced thanks to the strong and swift policy actions taken by the authorities, including the high vaccination rate," the China report read.

However, it warned that recovery has slowed and that it remains unbalanced and vulnerable to risks.

"Directors called for continued appropriate policies that support the economy and its rebalancing and for progress in key structural reforms to transition to 'high-quality'— balanced, inclusive, and green—growth," it added.

IMF directors also emphasized the importance of financial support for the recovery process.

"They recommended that fiscal support further strengthen social protection, which would reduce households’ precautionary savings, promote a rebalancing toward consumption and the services sector, and facilitate the transition to high-quality growth," the report read.

The IMF revised its China economic growth forecast for this year by 0.8% points to 4.8% in an updated World Economic Outlook released on Tuesday.