The head of the International Monetary Fund is warning that the global economy is losing momentum and has urged governments to take action to boost growth.

IMF chief Christine Lagarde made the remarks on Tuesday in a speech at Frankfurt's Goethe University.

Meanwhile, Lagarde also suggested that the IMF will cut its global economic forecasts next week.

"Overall that global outlook has weakened further over the last six months so you can illicit from that that there will be a slight revision and that has been exacerbated by three factors: one, which is China's rebalancing business model and a relative slow-down as a result. Lower commodity prices probably for longer, and the financial tightening as prospects as well as reality for many countries."

In January, the IMF forecast global growth of 3.4 percent this year, increasing to 3.6 percent in 2017.

To counteract the headwinds, Lagarde is urging governments to accelerate structural reforms, increase fiscal support and continue an accommodative monetary policy.

Lagarde also called for improved tax incentives for research and development investments.

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