The International Monetary Fund (IMF) has warned that it is planning to lower its growth forecast in light of the economic situation becoming 'more worrisome'.
IMF Managing Director Christine Lagarde, who was in Japan on Friday to meet with Prime Minister Yoshihiko Noda, said the Fund would cut its growth forecast from its current level of 3.5% in its next global outlook, which is due on on July 16th.
Lagarde said: "What I can tell you is that it will be tilted to the downside and certainly lower than the forecast that was published three months ago.
"That is predicated on the right set of actions being taken in Europe in order to avoid very significant deterioration and to eliminate major threats.
"Over the past few months, the outlook has, regrettably, become more worrisome. This is a global crisis. In today's interconnected world, we can no longer afford to look only at what goes on within our national borders. This crisis does not recognise borders."
Lagarde also added that "further progress will continue to be needed to overcome the crisis decisively and avoid the damaging effects on stability and growth".
The current growth forecast of 3.5% was the result of an upwards revision in April, at which time the IMF also predicted a expansion of 4.1% in 2013.
The Managing Director also said she was impressed with the "significant steps" taken at June's EU summit in Brussels.
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