While global economic growth was less than expected in 2015 amid a decline in commodity prices, flagging trade and episodes of financial volatility, the World Bank noted, the outlook for the coming year hinged on how developed economies performed.
"Firmer growth ahead will depend on continued momentum in high-income countries, the stabilization of commodity prices, and China's gradual transition towards a more consumption and services-based growth model."
The World Bank predicted that developing economies are set to expand by 4.8 percent in 2016, less than earlier forecasts, but up from a post-crisis low of 4.3 percent in the year just ended.
However, growth is projected to slow further in China, while Russia and Brazil are expected to remain in recession in 2016. The South Asia region, led by India, is projected to be a "bright spot" with the recently negotiated Trans-Pacific Partnership having the potential , it said, to "provide a welcome boost to trade."
Although the World Bank saw a faster-than-expected slowdown in large emerging economies as "unlikely," such a scenario could have global repercussions, it warned. "Risks to the outlook also include financial stress around the U.S. Federal Reserve tightening cycle and heightened geopolitical tensions."