The extreme weakness in the emerging market component of the Tiger growth index shows that data releases have been significantly weaker than their historic averages.
Divergence is almost as important as a new trend highlighted in the index, however, with India emerging as a bright spot and commodity importers such as Brazil and Russia mired in recession.
Because emerging economies are now much more important in the global economy and growth rates are still higher than their developed counterparts, global growth is still hovering around 3 per cent, close to its long-term average.
The concern, according to Mr Prasad is that the slump in emerging economies' confidence will infect advanced economist in the months ahead.
Despite weak employment figures on Friday, the US still appears a bright spot in the world economy alongside the UK.
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Elsewhere, there are increasing calls for more stimulus from central banks to stop the slide in growth, whose impact is being felt more widely than in commodity exporting countries. But there are increasing concerns that monetary policy has become ineffective in providing the necessary boost, Mr Prasad said.
"The impotence of monetary policy in boosting growth and staving off deflationary pressures has become painfully apparent, especially when it is acting in isolation and when a large number of countries are resorting to the same limited playbook", he said.
Financial markets have begun to lose confidence in the ability of central banks to restore demand to the global economy, with equity markets in the third quarter posting the biggest losses for any equivalent period since the eurozone crisis of 2011.
While the IMF will recommend that countries maintain policies of cheap money, careful deficit-cutting to minimise the contractionary effects and deep structural reforms to boost the longer-term potential for expansion, such calls have been falling on deaf ears. Ms Lagarde is concerned that promises made at the G20 summit last year have already been broken.
"Few lessons seem to have been learnt and absorbed by national leaders, who continue to rely largely on the convenient but wobbly crutch of monetary policy," Mr Prasad said.