The IMF projected the USA would grow at 2.4% and 2.1% in 2019 and 2020 respectively - marginally revised upwards by 0.1 and 0.2 percentage points respectively from April projections.
The U.S. -China trade war will slash 2019 global growth to the slowest rate since the financial crisis a decade ago, the International Monetary Fund warned on Tuesday.
The world economy is projected to grow only 3 per cent this year and 3.4 per cent next year amid a "synchronised slowdown", according to the WEO.
As against the country's real growth rate of 6.8 per cent in 2018, the International Monetary Fund in its latest World Economic Outlook projected India's growth rate at 6.1 per cent in 2019.
India's economy decelerated further in the second quarter, held back by sector-specific weaknesses in the automobile sector and real estate as well as lingering uncertainty about the health of non-bank financial companies'.
"With uncertainty about prospects for several of these countries, a projected slowdown in China and the United States, and prominent downside risks, a much more subdued pace of global activity could well materialize", the report said.
The IMF said that in India, monetary policy and broad-based structural reforms should be used to address cyclical weakness and strengthen confidence. "This should be supported by subsidy-spending rationalisation and tax-base enhancing measures".
China's growth is projected to dip to 6.1 per cent this year and 5.8 per cent next year.
"IMF estimates that global GDP would be reduced by 0.6% in 2020 if October/December tariffs do not take effect, instead of 0.8% reduction", Gopinath added.
"At three percent growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions", Gopinath said, welcoming news of a truce in the US-China conflict, announced Friday after talks in Washington.
The new forecast predicts global growth of 3.0 per cent this year, down 0.2 percentage point from its previous forecast in July and sharply below the 3.6 per cent growth of 2018. "Higher tariffs and prolonged uncertainty surrounding trade policy have dented investment and demand for capital goods, which are heavily traded", she said.
Under Britain's existing budget rules, the government aims to bring down public debt as a share of the economy - which has more than doubled since the global financial crisis to stand at around 80% - each year.
Euro-area growth was reduced this year and next, to 1.2 per cent and 1.4 per cent. Estimates for Germany, France, Italy and Spain were lowered for both years.
The IMF report said "risks seem to dominate the outlook", but recent monetary easing in many countries "could lift demand more than projected, especially if trade tensions between the US and China ease and a no-deal Brexit is averted".
Major central banks have taken steps to soften the blow to growth by lowering interest rates, without which the slowdown would have been worse, she said.