The International Monetary Fund (IMF) has warned that the United States and the euro zone countries are at increased risk of falling back into recession.
The new forecast says other economies will also be significantly damaged if that happens, the BBC reports.
The IMF says the prognosis for economies in the developed world is weak and bumpy expansion and predicts their GDP will expand at an "anaemic pace" of 1.5% in 2011.
Global growth will shrink to 4% in 2012, from 5% last year, on factors such as major financial turbulence in the eurozone.
Three months ago the IMF had been predicting expansion of 4.5% percent for 2012.
Among the major advanced economies, the IMF now thinks Germany and Canada will be the only countries to grow by more than 2% in 2011.
In 2012, none will grow that fast, except Japan, as its economy rebounds from this year after an earthquake and tsunami ravaged the country.