Global growth could be "derailed" over the next two years if key transitions in the world economy are not successfully navigated, the International Monetary Fund has warned.

It has surprisingly downgraded its predictions for global growth for 2016 and 2017, cutting growth estimates by 0.2 percentage points across the board for advanced economies, for emerging markets, and for the world, over both years.

The move will wipe away billions of dollars in potential global GDP, leaving the Turnbull government with an even tougher task when preparing its May budget.