The bank's Global Economic Prospects 2017 report said the receding of obstacles to economic activity in emerging markets and commodity exporters would drive growth. The forecast for advanced economies is growth edging up to 1.8 percent in 2017.

However, the forecast could be revised upwards if fiscal stimulus in economies such as the US generates faster domestic growth or downwards if rising trade protection has adverse effects.

Emerging and developing economies should see growth rise to 4.2 percent from 3.4 percent in 2016, largely due to modestly rising commodity prices.

Uncertainty about policy direction in many major economies could become protracted and prolong the sluggish investment climate that is hampering low, middle and high-income countries.

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