The International Monetary Fund cut its forecast for Italy on Tuesday and said the country's economy will grow by less than one percent this year.

The IMF also forecasts that Italy's economy will expand only marginally faster in 2017 at about one percent. The IMF says it cut its previous forecast for Italy because of Britain's decision to leave the European Union.

The IMF says the Brexit vote has heightened volatility in global financial markets and increased downside risks for Italy. The IMF in May had projected Italy's growth at 1.1 percent this year and 1.25 percent in 2017.