This will be the worst year for global economic growth since the financial crisis a decade ago, the International Monetary Fund has warned in its latest set of forecasts.

In its World Economic Outlook the Fund cut its forecast for 2019 global gross domestic product growth to 3% - the lowest level since 2009 - in the face of a host of risks, including the US-China trade war, an emerging market slowdown and the prospect of a no-deal Brexit.

Strikingly, the biggest downgrades in growth were faced by emerging and developing economies which have helped support global activity in the years since the financial crisis, while some developed countries, including the UK, saw only small cuts to their growth projections.

Image: The IMF sees the US-China trade war as a growing threat to demand globally

At 1.2% this year, the UK's growth is projected to be the weakest since 2009, but will nonetheless be stronger than in Germany, Japan, Italy, and on a par with French GDP growth.

Gita Gopinath, the IMF's chief economist, said: "The global outlook remains precarious with a synchronised slowdown and uncertain recovery.


"At 3% growth, there is no room for policy mistakes and an urgent need for policymakers to support growth.

"The global trading system needs to be improved, not abandoned.

"Countries need to work together because multilateralism remains the only solution to tackling major issues, such as risks from climate change, cybersecurity risks, tax avoidance and tax evasion, and the opportunities and challenges of emerging financial technologies."

The report warned that a no-deal Brexit could exacerbate the slowdown, with Ms Gopinath saying: "Heightened trade and geopolitical tensions, including Brexit-related risks, could further disrupt economic activity, and derail an already fragile recovery in emerging market economies and the euro area."

Image: Kristalina Georgieva succeeded Christine Lagarde as the Fund's managing director last month

The report comes on the eve of the IMF's annual meetings in Washington DC, billed as a crucial meeting for policymakers as they confront the most serious threat of recession and slowdown since the financial crisis and great recession of 2008.

The Fund said governments needed to commit to more spending and investment to attempt to boost economic growth.

Ms Gopinath said: "Monetary policy [in other words central bank changes in interest rates] cannot be the only game in town.

"It should be coupled with fiscal support where fiscal space is available, and policy is not already too expansionary."