WASHINGTON (AP) — The International Monetary Fund on Tuesday cut its global economic growth forecasts and warned that the U.S. would harm the world economy if it fails to raise its borrowing limit.

The international lending agency said the global economy will grow 2.9 percent this year and 3.6 percent in 2014. Both are 0.2 percentage point lower than the group’s July forecasts. The main reason for the downgrade was slower growth in China, India, Brazil and other developing countries.