The Organisation for Economic Cooperation and Development on Wednesday cut its global economic outlook for 2016, as growth remains subdued in the United States, Europe and Japan amid sluggish trade activity.

The OECD now expects the global economy to expand 2.9 percent this year, downgraded from the 3 percent forecast in June, also citing the effects of Britain's vote to leave the European Union as undermining conditions in advanced economies.

"The world economy remains in a low-growth trap with persistent growth disappointments weighing on growth expectations and feeding back into weak trade, investment, productivity and wages," the Paris-based organization said in its interim economic outlook.