According to the organisation, the world could be set to face a 'lost decade' thanks to high oil prices, poor growth in the US, the debt problems engulfing Europe and the upset caused by the Japanese tsunami.
In its bi-annual World Economic Outlook report, the IMF estimated global growth is likely to tumble from 4.5 per cent to four per cent, the US will see a reduction of one per cent to 1.5 per cent and the UK is to witness a dip from 1.5 per cent to 1.1 per cent.
The IMF - which has been in operation since the end of the second world war - stated: "The global economy is in a dangerous new phase. Global activity has weakened and become more uneven, confidence has fallen sharply recently and downside risks are growing."
By Gary Cooper