The International Monetary Fund (IMF) on Tuesday cut its growth forecast for the world economy to 2.9 percent in 2013, 0.3 percentage point lower than its July projection, due to growth slowdown in key emerging market economies.

The Washington-based global lender also revised down its forecast for the world economic growth in 2014 to 3.6 percent, 0.2 percentage point lower than its July estimate.

"Global growth is in low gear, the drivers of activity are changing, and downside risks persist," the IMF said in its latest World Economic Outlook (WEO) report.

"China and a growing number of emerging market economies are coming off cyclical peaks. Their growth rates are projected to remain much above those of the advanced economies but below the elevated levels seen in recent years, for both cyclical and structural reasons," noted the flagship report of the IMF.

"Growth in China is slowing, which will affect many other economies, notably the commodity exporters among the emerging market and developing economies," said the report.

The Chinese economy was expected to ease pace to grow 7.6 percent in 2013 and 7.3 percent in 2014, respectively, said the IMF report.

"At the same time, old problems -- a fragmented financial system in the euro area and worrisomely high public debt in all major advanced economies -- remain unresolved and could trigger new crises," noted the report.

The euro zone will remain in recession in the remaining weeks of 2013 with economic activity contracting by 0.4 percent. Growth will rise to 1.0 percent in 2014, predicted the IMF.

"U.S. monetary policy is reaching a turning point, and this has led to an unexpectedly large increase in long-term yields in the United States and many other economies," noted the report.

"This change could pose risks for emerging market economies, where activity is slowing and asset quality weakening. Careful policy implementation and clear communication on the part of the Federal Reserve will be essential," according to the report.

The IMF forecast that the U.S. economy would expand 1.6 percent in 2013 before firming to a 2.6-percent growth in 2014.

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