"Over the past four years this is the first time we didn't have a downgrade and I think that's very good sign. Growth is firming," World Bank economist Ayhan Kose told AFP.
For the global growth in 2018 and 2019, the Global Economic Prospects report predicted a growth rate of 2.9 percent for both years.
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The recovery in trade growth in 2017 is supported by stronger demand from major advanced economies, increased trade flows to and from China, and a diminished drag from weak demand from commodity exporters, said the World Bank.
The seven largest emerging market economies – China, Brazil, Mexico, India, Indonesia, Turkey and Russia – remain the key engine for the world economy. As a group, emerging market and developing economies are expected to grow 4.1 percent this year, led by India, which is expected to expand by 7.1 percent, and China, at 6.5 percent.
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Improving signs also show in developed countries, especially in Japan and Europe, which the World Bank expected a 1.5% and 1.7% respectively this year.
Despite the optimistic predictions, the World Bank warned that risks are still present.
Rising trade protectionism and uncertainty over policies, especially US trade protectionism and immigration restrictions under the Trump administration, pose important cautions for the outlook, Kose cautioned.
The World Bank issued the Global Economic Prospects report twice a year – in January and in June. This report marked the first time in several years that its June forecasts were not reduced from those published in January due to rising growth risks
