The forecast for global growth in 2015 and 2016 has been downgraded by the International Monetary Fund (IMF).
The body predicts that this year, the world economy will reach 3.5 per cent – down from the 3.8 per cent it put forward three months ago. Next year's forecast has also been decreased, to 3.7 per cent.
The revision is based on a number of factors combining to make the global outlook weaker, including weaker investment and a troubled Eurozone – the IMF predicts recovery in the single currency zone will continue, but at a slow rate.
To counteract the slow growth it is currently experiencing, the European Central Bank has listed tackling deflation as one of its main priorities. The Bank is widely expected to announce a programme of quantitative easing later this week.
The sharp drop in oil prices, which has been economically beneficial to most countries, was not enough to counteract slow growth.
The country whose forecast has been revised down by the largest degree is Russia, where geopolitical tensions and the drop in oil prices is expected to make the economy contract by three per cent and one per cent in 2015 and 2016, respectively.
Not all countries have been subjected to this downgrade, however – in the case of the US, growth forecasts have been revised up to 3.6 per cent this year and 3.3 per cent next year.