IMF cuts forecasts global growth

The IMF maintened its forecast for weak economic growth in the advanced economies on Tuesday while citing increasing risks from isolationist sentiment, but upgraded its outlook for emerging markets. "Compared to the 1998-2007 averages, long-term potential growth is now projected to be lower in all regions", it wrote in the statement.

Global growth estimate remained unchanged from its July projection at 3.1% this year and 3.4% in 2017 . "Global growth remains weak," said IMF chief economist Maurice Obstfeld.

The IMF said advanced economies as a whole will see a weakening of growth in 2016, down 0.2% from July to 1.6%, while emerging market and developing economies will see a 0.1% gain in growth to 4.2 per cent. Growth forecasts for China remained unchanged at 6.6% for 2016 and 6.2% for 2017.

The IMF warns that populist discontent could cause countries to retreat from global trade, weakening worldwide growth: "The Brexit vote and the ongoing US presidential election campaign have highlighted a fraying consensus about the benefits of cross-border economic integration, wrote in the note. The IMF report assumes oil prices will average $43 this year and $50.60 in 2017.