The gloomy International Monetary Fund forecasts, released on the eve of the World Economic Forum in Davos, Switzerland, highlighted the challenges facing policymakers as they tackle an array of actual or potential crises, from the U.S.
However, she also said, "While this does not mean we are staring at a major downturn, it is important to take stock of the many rising risks".
Commenting on Indian economy she said, India remains one of the fastest growing major economies.
"China is a big driver of global growth, it is an economy that we should monitor closely".
Hit by weak domestic demand and a protracted trade dispute with the United States, China's GDP for the last three months of last year eased to 6.4 per cent year on year from 6.5 per cent in the third quarter, in line with analysts' expectations. "As of early January, crude oil prices stood at around $55 a barrel, and markets expected prices to remain broadly at that level over the next 4-5 years".
"It's quite a reversal from a year ago and the gloomier mood cuts across just about everywhere in the world", said Bob Moritz, global chairman at PwC.
"As seen in 2015-16, concerns about the health of China's economy can trigger abrupt, wide-reaching sell-offs in financial and commodity markets that place its trading partners, commodity exporters, and other emerging markets under pressure", the International Monetary Fund said in the report.
During an interview with FOX Business on Friday, White House Economic Council Director Larry Kudlow admitted that trade talks with China would impact both the us and world economies. But the organization said a slowdown in China could be "faster than expected", potentially spooking financial markets.
"For both years, the projection is 0.3 percentage point lower than last October's projection, as softening oil prices have caused downward revisions for Angola and Nigeria".
The Washington-based fund said, "In sub-Saharan Africa, growth is expected to pick up from 2.9 per cent in 2018 to 3.5 per cent in 2019, and 3.6 per cent in 2020".
"As seen in 2015-16, concerns about the health of China's economy can trigger abrupt, wide-reaching sell-offs in financial and commodity markets that place its trading partners, commodity exporters, and other emerging markets under pressure", it said.
While billionaires saw their combined fortunes grow by $2.5 billion each day past year, the world's 3.8 billion poorest saw their relative wealth decline by 11 percent.
The Washington-based lender held its 2019 growth forecast at 1.5 per cent, saying the fiscal stimulus announced in the October 29 budget would likely help offset the dampening effect which Brexit fears are having on the world's fifth-biggest economy.