 "World Bank ups global GDP estimate to 3.2%, lowers India forecast to 6.2%")
The global economy is estimated to expand at 3.2% this year from 2.4% in 2013, with growth picking up in developing countries and high-income economies, the World Bank said. However, it lowered its India expectations to 6.2% from an earlier estimate of 6.5%
Growth prospects, however, remain vulnerable to US tapering, the global lender said in its semi-annual Global Economic Prospects report.
It said that India's economy will grow over 6% in 2014-15 and 7.1% by 2016-17 as global demand recovers and domestic investment increases.
In China, growth is estimated to stay flat in 2014 at 7.7%, slowing to 7.5% for the next two years, reflecting deleveraging and less reliance on policy-induced investment.
Global GDP growth is expected to stabilise at 3.4% and 3.5% in 2015 and 2016, respectively, the World Bank said.
The firming of growth in developing countries is being bolstered by an acceleration in high-income countries and continued strong growth in China, it said.
However, global growth outlook will be sensitive to headwinds from rising global interest rates and potential volatility in capital flows, as the US Federal Reserve begins withdrawing its massive monetary stimulus, the report noted.
"The performance of advanced economies is gaining momentum, and this should support stronger growth in developing countries in the months ahead," said the bank's chief Jim Yong Kim.
Growth in developing countries will pick up from 4.8% in 2013 to a slower-than-expected 5.3% this year, reflecting a cooling off of the unsustainable turbo-charged pre-crisis growth.
For high-income economies, the drag on growth from fiscal consolidation and policy uncertainty will ease, helping to boost economic growth from 1.3% in 2013 to 2.2% this year.
Among them, the recovery is most advanced in the US, as it is projected to grow by 2.8% this year after expanding for ten quarters.
The Euro Area, after two years of contraction, is projected to grow by 1.1% this year board.