American trade war could have drastic implications on the global economy and even split the world into two geopolitical trading blocs, according to the director general of the World Trade Organization,

The IMF said that the global economy will grow just 2.8% this year, down from its forecast in January of 3.3%, according to its latest World Economic Outlook.

Global trade tensions sparked by U.S. President Donald Trump's tariffs have hurt UK business sentiment and will slow economic growth, according to a Reuters poll of economists who stuck to expectations for one Bank of England interest rate cut per quarter.