The Organisation for Economic Co-operation and Development (OECD) slashed its annual global growth forecast on Tuesday, warning that trade tensions and uncertainty will stifle the world economy – hitting the United States especially hard.

The world economy is expected to expand by a "modest" 2.9 percent in 2025 – down from a previous forecast in March of 3.1 percent, the Paris-based organization said.

The U.S. economy is forecast to grow 1.6 percent, down from 2.2 percent previously.