The International Monetary Fund said Wednesday that the moderate global growth in the first half of the year is reflective of two elements: a slowdown in emerging economies and weak recovery in advanced ones.
"In an environment of rising financial market volatility, declining commodity prices, weaker capital inflows and depreciating emerging market currencies, downside risks to the outlook have risen, particularly for emerging markets and developing economies," the IMF said in a report.
The analysis comes at a time when global markets have been in flux, with U.S. crude prices closing up nearly 2 percent on Wednesday after falling as much as 4 percent. This move came a day after crude futures settled down nearly 8 percent after a massive three-day rally.
Equities across the globe have also been taken for a ride, with U.S. stocks closing more than 1 percent higher across the board a day after plunging more than 2 percent.