The World Bank has cut its economic projections for the global economy, warning that the world can not rely on the U.S. as its single growth engine.
In its biannual report the bank forecast the world economy will grow 3.0% this year and 3.3% in 2016, down from its earlier forecast of 3.4% and 3.5%, respectively.
The U.S. remains the bright spot on the economic map, with the organization hiking its growth forecast for the country from 3% to 3.2% in 2015.
But Europe, Japan, Russia and parts of Latin America are still struggling, the bank said.
The report, published late Tuesday, sent markets tumbling, with commodities taking the biggest hit. Copper futures dropped by 6% on the NYMEX.
The bank said low oil prices could give a boost to oil-importing, developing economies, such as China and India.
But oil exporters will continue to struggle, with Russia hit particularly hard by the declining price of crude. The World Bank expects Russia’s economy will contract by 2.9% in 2015.
The report predicts oil prices will remain low throughout 2015, forcing countries like Russia to rethink their economic models.
Crude prices have dropped by more than 50% over the past few months as supply has surged and demand has weakened.
The World Bank expects growth will pick up from the disappointing 2.6% rate in 2014, but said key risks could hit the recovery.
For example, market volatility could sharply raise borrowing costs in developing countries and deflation in Japan and Europe could weaken growth even further.