In its latest economic forecast, NIESR predicted that the world economy would grow by 3.2%, down 0.1 percentage points from its previous forecast in February, and from 3.4% in each of the last three years.

NIESR said recent data on economic activity had been relativity encouraging in the eurozone and India, but disappointing in the US, thanks to slower growth in demand and activity. China had seen a weakening in both its construction and manufacturing sectors, while the economy in Russia was also weak due to the tensions with Ukraine and international sanctions imposed following the annexation of Crimea.

However, the economic think-tank said that economies around the world would be helped in over the next year by the low price of oil and low interest rates continuing in advanced economies, leading to stronger growth in 2016.

Overall, it now expects a pick-up to 3.8% growth next year, revised up slightly from its February forecast of 3.6%.

‘This upward revision is accounted for mainly by upgrades for the eurozone, Japan, and India, partly offset by downward revisions for Canada and China. Our revised forecast implies the persistence of significant output gaps in many countries, and it is subject to a number of risks. It reflects recent developments in economies, markets, and policies.’