The International Monetary Fund on Tuesday cut its global growth outlook for the year, warning the world economy faces the increased risk of a "hard landing" due to continued fallout from a spate of bank failures, higher interest rates and stubborn inflation. 

The Washington-based institution said in its latest World Economic Outlook that global gross domestic product will grow by just 2.8% this year – which represents a 0.1 percentage point decline from its previous forecast in January – before rising to 3% in 2024.

Treasury Secretary Janet Yellen on Tuesday rejected growing pessimism about the direction of the global economy, cautioning, “I wouldn’t overdo the negativism.”

The International Monetary Fund warned earlier in the day of an “anemic outlook” for the economy, thanks to higher interest rates aimed at taming inflation, deteriorating financial conditions amid banking turmoil, the war in Ukraine and geo-economic fragmentation.

The International Monetary Fund on Tuesday released its weakest global growth expectations for the medium term in more than 30 years.

The Washington, D.C.-based institution said that five years from now, global growth is expected to be around 3% — the lowest medium-term forecast in an IMF World Economic Outlook report since 1990.

“The world economy is not currently expected to return over the medium term to the rates of growth that prevailed before the pandemic,” the fund said in its latest economic outlook.