The International Monetary Fund has cut its growth outlook for Canada for this year and says the global economy is "in a dangerous place."

"Global activity has weakened and become more uneven, confidence has fallen sharply recently, and downside risks are growing,” the IMF said in the September edition of its world outlook.

The IMF reduced its 2011 growth forecast for Canada to 2.1 per cent, down by 0.8 of a percentage point from its June 2011 outlook. For 2012, growth in Canada expected to slow to 1.9 per cent, down by 0.7 of a percentage point from the IMF's summer outlook.

The cut to the Canadian outlook came as the IMF chopped its growth forecast for the world's advanced economies — which include the United States, the eurozone area and Japan — to an "anemic" 1.6 per cent this year from an earlier prediction of 2.2 per cent.

The IMF said strong and co-ordinated action is needed to avert "a decade of lost growth in the advanced economies."

"Strong policies are urgently needed to improve the outlook and to reduce the risks," said IMF chief economist Olivier Blanchard. "Only if governments move decisively on fiscal policy, financial repairs, and external rebalancing, can we hope for stronger and more robust recovery."

Growth in emerging and developing economies is expected to remain strong, though weaker than forecast earlier.

The Chinese economy is expected to grow by 9.5 per cent this year and by 9.0 per cent in 2012, while the Indian economy is seen growing by 7.8 per cent for 2011 and 7.5 per cent the following year.