The new forecasts were released on the Indonesian resort island of Bali where the International Monetary Fund and World Bank annual meetings are getting underway.
Since the last GFSR in April, global economic conditions have become less balanced, with a more pronounced divergence between advanced and emerging economies.
Maurice Obstfeld, IMF's chief economist and director of research said whatever affects the three major economies will affect the whole region as majority of the countries relies on their trajectories.
Lagarde also touched on the economic situation in eurozone member Italy, warning Rome that it was well-advised to abide by European Union fiscal rules and adhere to the bloc's financial stability regulations amid concerns that the country's 2019 budget could exacerbate financial problems.
Ms Lagarde said she was hopeful.
The head of the World Trade Organization warned that a "full-blown commercial war" could shrink global trade by almost 18 percent and also knock worldwide GDP, hurting the United States, China, and others.
The IMF's latest report on world financial stability, released Wednesday, said global growth could be at risk if emerging markets deteriorate further or trade tensions escalate.
Florida Governor To Declare State Of Emergency Ahead Of Possible Hurricane
After reaching land, Michael is expected to travel northeast at hurricane strength as it passes over Georgia. Scott had already announced Sunday morning he would declare a state of emergency due to the storm.
Meanwhile, rising interest rates are also pressuring some emerging markets with capital outflows, notably Argentina, Brazil, Turkey and South Africa.
In a report released on Tuesday, the International Monetary Fund estimated that despite positive policy tailwinds in the US economy resulting from things like tax reform, growth will be less than previously expected next year, as a result of the trade war.
'Strong growth over the summer is likely to reassure policymakers that the recent interest rate rise was warranted, but they'll be hoping to see the momentum maintained as Brexit approaches.
The global finance agency dropped its projection for world economic growth by two-tenths of a percentage point for both 2018 and 2019 to 3.7 percent, the first time it had trimmed its economic outlook in more than two years.
Growth in the 19-nation zone is forecast to slow further to 1.9 percent in 2019, unchanged from the July estimate.
Yet the market seems complacent about the risk of a broad-based correction in global capital markets and much sharper tightening of global financial conditions, it added. The U.S. economy is expected to grow 2.5 percent in 2019.
Last year, China shipped goods worth $375 billion more to the US than it took in from the United States, a figure Trump has often said he wants to curb sharply in an effort to promote American businesses.
Washington simultaneously threatened to add tariffs to a further $267 billion (£205 billion) of products, which saw Beijing retaliate with 10 percent tariffs on $60 billion (£46 billion) of United States imports.