The IMF said in an update to its World Economic Outlook it was now predicting 3.7% global growth in both 2018 and 2019, down from its July forecast of 3.9% growth for both years.
As part of its new Global Financial Stability Report, the International Monetary Fund said on Wednesday that financial institutions to "step up their preparations for a post-Brexit landscape" and prepare for the worst case scenario - a no-deal Brexit, also known as a hard Brexit.
"Nonetheless, despite trade tensions and continued monetary policy normalisation in a few advanced economies, global financial markets have remained buoyant and appear complacent about the risk of a sudden, sharp tightening in financial conditions".
Lagarde told her audience Wednesday that she did not feel overly gloomy about global conditions.
The rapid build-up in debt in China in recent years also is a concern, although Chinese authorities have taken steps to rein in debt growth, he said.
Wall Street dives, setting the ASX up for heavy losses at open
USA stocks are plunging toward their worst loss in six months on Wednesday as technology companies continue to take sharp losses. Investors see many of these countries as being vulnerable to higher US interest rates, which can pull away investment dollars.
The government now will have to increase regulatory duties (RD) and customs duty (CD) on imports to contain trade deficit. Over the medium term, growth is expected to gradually slow to 5.6 per cent as the economy continues to make the transition to a more sustainable growth path with continued financial de-risking and environmental controls, it noted.
"All the accusations against China are completely trumped up..."
It said that would include boosting foreign currency reserves to be used in a crisis as well as working with local bond markets to build a domestic investor base, rather than relying on financing from overseas. It cited off-budget debt and weak corporate performances as risks for the future. It now expects the global economy to only expand by 3.7% in 2018 and 2019, down from 3.9% before.
Despite the Federal Reserve's interest rate increases, financial conditions "have eased further" in the U.S. as equity valuations have stayed lofty.
Figures from the Central Bank of Nigeria website revealed that gross foreign reserves level dropped from $45.3 billion on September 10, 2018, to $43.6 billion on October 8.
On debts, the IMF's Senior Communications Officer, in the Communication's Department, Andreas Adrian, said there has been an increase in countries that issue debts in the worldwide capital markets, including Sub-Saharan countries, a development he said was good for infrastructural financing, but nevertheless cautioned that it has its attendant consequences.