The International Monetary Fund is set to cut its forecast for global growth in 2013 this week due to the impact of US public spending cuts and continued uncertainty in the eurozone.
The IMF forecasted global growth of 3.5 per cent in January, however it is expected to reduce that figure by 0.1 per cent when new statistics are released on Tuesday.
According to The Guardian, the US is set to be hit with the largest downgrade with its growth outlook being cut from 2 to 1.7 per cent. This is on the back of the £55.3bn package of automatic spending cuts which took effect last month.
The eurozone is also set for a donwgrade from the 0.2 per cent contraction forecast on the back of the political uncertianty stemming from the Italian elections in February.