Chinese employees working on micro and special motors for mobile phones at a factory in Huaibei, China, on March 7, 2017.

The International Monetary Fund is keeping its forecast for global economic growth unchanged at 3.9 percent this year despite worries about rising trade tensions and higher oil prices. But the lending agency is downgrading the outlook for Europe and Japan.

The IMF now predicts that the economy of the 19-country eurozone will grow 2.2 percent in 2018, down from the 2.4 percent it forecast in April. The fund expects the Japanese economy to expand 1 percent this year, downgrading its 1.2 percent April forecast.

The IMF still expects tax cuts to lift U.S. economic growth to 2.9 percent this year, up from 2.3 percent in 2017.

Citing proliferating trade conflicts, IMF chief economist Maury Obstfeld warned that "the risk of worse outcomes has increased" for the world economy.