The World Bank has predicted global economic growth of 2.7% in 2017, unchanged from the January forecast and 0.3 percentage point up from 2016 growth.
The development lender's "Global Economic Prospects" June 4 report cited a boost to manufacturing and trade, rising market confidence and stabilizing commodity prices as drivers for resumed growth in commodity-exporting emerging economies.
Advanced economies' growth is expected to pick up to 1.9%, from 1.8% in the January forecast, while emerging market and developing economies' growth will accelerate to 4.1%, compared to 3.5% in 2016. The bank cited supportive global financing conditions and stable commodity prices.
It also noted that growth in the seven largest emerging economies, China, Brazil, Mexico, India, Indonesia, Turkey and Russia, will exceed the long-term average by 2018.
"[It] is encouraging to see signs that the global economy is gaining firmer footing. With a fragile but real recovery now underway, countries should seize this moment to undertake institutional and market reforms that can attract private investment to help sustain growth in the long term," World Bank Group President Jim Yong Kim said.
Downside risks to the forecasts include policy uncertainties, the pace of advanced economies' monetary policy normalization, the possibility of continued weak productivity and investment growth, as well as mounting debt and deficits in developing economies, the World Bank said.
By the end of 2016, government debt exceeded its 2007 level by more than 10 percentage points of GDP in more than half of emerging market and developing economies, while fiscal balances worsened from their 2007 levels by more than 5 percentage points of GDP in one-third of these countries.