The IMF cited a sharp slowdown in Chinese trade and weak commodity prices as weighing on global economic growth.

The IMF also revised downward by 0.2 percentage point overall forecasts for global growth for both 2016 and 2017, stating that these revisions reflect, to a substantial degree, "but not exclusively, a weaker pickup in emerging economies than was forecast in October".

The IMF adjusted its projection for SA's growth to 0,7% in 2016 and 1,8% in 2017 from its October estimate of 1,3% and 2,1% respectively.

The economy worldwide would expand 3.4 percent this year and 3.6 percent next year, the organization said. According to the International Monetary Fund, the Russian economy will resume growth in 2017, with its GDP growing at the rate of 1%.

And, plateauing of growth in the USA was another main reason for lowering global forecasts this time.

Ms. Lagarde said it was also possible that the economy could surprise on the upside, but the fund has already lowered its outlook for 2016 and with markets off to a turbulent start the immediate prospects for growth have clearly become less certain.

"We don't see a big change in the fundamentals in China compared to what we saw six months ago, but the markets are certainly very spooked by small events there that they find hard to interpret", said Maurice Obstfeld, Economic Counselor, IMF in a videotaped statement. Growth in emerging markets and developing nations slowed for the fifth straight year.

Europe's emerging economies would grow at a broadly steady pace, although some would suffer deceleration in 2016, since Russian Federation could remain in recession in 2016.

Official China gross domestic product figures released earlier today showed the Chinese economy slowed to 6.9 per cent growth during 2015.

In the euro area, it highlights stronger private consumption supported by lower oil prices and easy financial conditions are outweighing a weakening of net exports.

The report underlined three key transitions that continue to influence the global outlook: the rebalancing in China, lower prices for energy and other commodities, and a gradual tightening in monetary policy in the US. Brazil's economy is now expected to shrink by 3.5 percent this year and to flatten out in 2017.

"For 2016 and 2017 we are downgrading growth estimates...across the board", said Maury Obstfeld, director of the IMF's research department.