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The International Monetary Fund (IMF) has cut its forecast for growth in the global economy.

On the morning it was revealed that China's economic growth fell to a 25-year low, the IMF has now said that it expects the global economy to grow by 3.4% this year and 3.6% in 2017.

Both mark a 0.2 percentage point decline on forecasts published in October.

In its report, the IMF said that if key challenges are not managed well, "global growth could be derailed".

Only three large, advanced economies are forecast to grow by more than 2% this year - the UK, US and Spain. And there is far worse news for Brazil - only a few years ago, it was considered one of the world's fastest growing economies - but the IMF now expects it to contract by 3.5% this year and report flat growth in 2017.

Things are not set to get any better for China. Following its weakest growth for 25 years (6.9%) in 2015, the IMF has forecast growth of 6.3% this year and 6% in 2017. Market experts blame slowing Chinese demand for the slump in commodity prices which have affected economies so heavily.