VIENNA, Nov 3 - The global economy is recovering but the U.S. current account deficit poses a threat that must be addressed, International Monetary Fund Managing Director Horst Koehler said on Monday. "Prospects for a recovery are firming in the advanced economies," Koehler said in opening remarks to the East-West Conference. But risks remain. "Chief among these is the excessive dependence of the world economy on growth in the United States and the resulting global current account imbalances. Resolving these imbalances in an orderly manner must be the primary objective of the international economic policy," Koehler said. In the United States, it is critical to restore medium-term fiscal balance. In the euro area, where recovery is more tentative, a vigorous acceleration of structural reforms is required. In Japan, reforms to the corporate and financial sectors must continue to boost growth prospects, he said. He also referred to the Asian countries that have been buying up dollars to prevent their currencies from appreciating. "Where reserve accumulation has been rapid and current account surpluses large, allowing greater exchange rate flexibility would be helpful, both domestically and globally," Koehler said.//