(VOVWorld) - On Tuesday, the International Monetary Fund (IMF) cut its forecasts for global economic growth this year and next year because of the UK's vote to leave the EU.

IMF cut its forecasts for global economic growth this year and next year because of the UK's vote to leave the UK. (Photo: Getty Images)

According to the IMF, the global economy is projected to expand 3.1 percent this year and 3.4 percent in 2017, a 0.1 percentage point reduction for each year relative to the IMF’s previous forecasts.

The Fund said Brexit could reduce the UK’s economic growth by 1 percent in 2017. It said the uncertainty following the UK referendum could result in a significant drop in domestic demand.

The IMF raised its 2016 growth forecast for the Middle East and North Africa because of a rebound in oil prices, but maintained its cautious outlook for Saudi Arabia.