The International Monetary Fund (IMF) released its World Economic Outlook on Tuesday. The IMF lowered its global economic growth forecasts due to a modest recovery in advanced economies and the slowdown in emerging economies.

The global economy will expand 3.4% in 2016, down from the previous forecast of 3.6%, and 3.6% in 2017, down from the previous forecast of 3.8%, according to the IMF.

"This coming year is going to be a year of great challenges and policymakers should be thinking about short-term resilience and the ways they can bolster it, but also about the longer-term growth prospects," Maurice Obstfeld, the IMF Economic Counsellor and Director of the Research Department, said.

The IMF said in its report that main risks to the outlook are China's rebalancing of its economy, lower commodity prices, and further interest rate hikes in the United States.

The IMF cut its growth forecasts in advanced economies to 2.1% in 2016 and 2017, down from 2.2% each, while emerging markets expected to expand 4.3% in 2016 and 4.7% in 2017.

The lender upgraded its growth forecast for the Eurozone for 2016 and 2017 to 1.7%.

The U.S. economy is expected to grow 2.6% in 2016 and in 2016, down from the previous forecast of 2.8% each.

China's economy is expected to expand 6.3% in 2016 and 6.0% in 2017, while India's economy is expected to grow 7.5% in 2016 and in 2017.

UK's GDP is expected to rise 2.2% in 2016 and in 2017.