The global economy is slowing, and the International Monetary Fund on Tuesday lowered its economic growth forecast to 3% this year for the world, its slowest pace since the global financial crisis.

“Growth continues to be weakened by rising trade barriers and increasing geopolitical tensions,” according to the IMF.

“We estimate that the US-China trade tensions will cumulatively reduce the level of global GDP by 0.8% by 2020,” it said. “Growth is also being weighed down by country-specific factors in several emerging market economies, and by structural forces, such as low productivity growth and aging demographics in advanced economies.”

Growth is expected to increase to 3.4% in 2020, but that is down 0.2% from a previous projection earlier this year.

Manufacturing has been weak, according to the report. And there are some initial signs of softening in the services sector in the US and the euro area.

GDP growth in advanced economies was downgraded to 1.7% for 2019.

It forecast UK economic growth of 1.2% this year and 1.4% next year. In the Euro Area, economic growth is expected to slow to 1.2 % this year and 1.4% in 2020.

Growth is expected to reach 5.9% this year in Emerging and Developing Asia and 6.0% next year.