The International Monetary Fund stated on Sunday that the global economic outlook is much more severe than expected last month. 

The IMF state that new high-frequency indicators "suggest that the outlook is dark," notably in Europe.

It claimed that most of the Group of 20's major economies were showing signs of deterioration in recent purchasing manager indexes.

It was predict that economic activity would decline as inflation remain stubbornly high.

That "readings for an increasing share of G20 nations have slipped from levels that suggest contraction earlier this year."

The IMF added that the current political environment was "unusually unstable." 

The IMF then stated that this presented "growing risks of a sovereign debt crisis for vulnerable countries."