(Reuters) - The possibility of a sharp global slowdown has eased due to recent policy measures adopted in the euro zone to tackle its debt crisis, the International Monetary Fund said on Thursday, although it warned that risks to global growth remain "squarely to the downside."

In a report to G20 finance ministers in Mexico at the weekend, and only published on Thursday, the IMF said the euro zone should act decisively on multiple front to successfully resolve its sovereign debt crisis.

"The key risk remains that policies do not shift Europe toward a 'good equilibrium' and fail to break adverse feedback loops between real, fiscal, and financial sectors," the IMF said.

(Reporting By Lesley Wroughton; Editing by Chizu Nomiyama)

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