The IMF said the global economy would grow 3.7 per cent this year, the same as in 2017 but down from the 3.9 per cent it was forecasting for 2018 in July.
But on Monday, he decided his finance minister should meet with officials at this week's annual conference of the International Monetary Fund and the World Bank in Bali, Indonesia, to discuss a potential package, the finance ministry said in a statement.
"The fast rise in worldwide oil prices, normalization of USA monetary policy, and tightening financial conditions for emerging markets are adding to this hard picture".
The IMF announced it had reduced its outlook on the global economy to a 3.7% growth rate for this year and next, down 0.2% from what it had originally predicted in July.
Growth in both the United States and China were expected to slow next year as a result of the trade dispute triggered by US President Donald Trump.
The trade confrontation weighs on China in particular, where growth is projected to slow to 6.6 percent this year and 6.2 percent in 2019, a downgrade of 0.2 points.
The IMF said the looming downturn in Turkey is a key reason for a broader revision of its growth expectations for emerging economies.
But the outgoing chief economist - who retires from the Fund later this year - added that it was a "mixed picture" with some Latin American and African nations getting growth forecast upgrades.
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The US will also see its growth "decline" once its fiscal stimulus, delivered through wide-ranging tax cuts "goes into reverse" according to Mr Obstfeld.
Trade tensions are expected to continue although Fund officials view U.S. -Mexico-Canada trade agreement as a positive sign.
ANALYST'S TAKE: "Renewed tension between the US and China has capped risk sentiment as a range of issues from trade to diplomacy are likely to challenge China-US relationship", Zhu Huani of Mizuho Bank said in a commentary.
"Trade policy reflects politics and politics remains unsettled in several countries, posing further risks", Obstfeld said. For next year, trade is seen growing just four percent, a half point less than the prior forecast.
It found that global GDP output under this scenario would fall by more than 0.8% in 2020 and remain roughly 0.4% lower in the long-term compared to levels without these effects, which "inflict significant costs to the global economy, especially through its impact on confidence and financial conditions".
It has recently taken a more accommodating stance to help buffer China's economy from the U.S. trade measures.
In the United States, momentum is still strong as fiscal stimulus continues to increase, but the forecast for 2019 has been revised down due to recently announced trade measures, including the tariffs imposed on $200 billion of USA imports from China.
It also assumes that Trump imposes a 25% tariff on imported cars and auto parts imports.