The world economy is expected to expand 2.7 percent this year, recovering from a post-crisis low in 2016, thanks to rising commodity prices and incoming U.S. president Donald Trump's stimulus plans, the World Bank said in its latest Global Economics Prospects report on Tuesday.
However, this growth could be hit by a significant slowdown in investment in emerging markets and political uncertainty in major economies, including the U.S., the bank added.
"After years of disappointing global growth, we are encouraged to see stronger economic prospects on the horizon," Jim Yong Kim, president of the World Bank, said in a statement accompanying the report.
"Now is the time to take advantage of this momentum and increase investments in infrastructure and people. This is vital to accelerating the sustainable and inclusive economic growth required to end extreme poverty," he added.
Speaking to CNBC on Wednesday, Franziska Ohnsorge, lead economist at the World Bank's global economic development prospects group, said that the growth forecast of 2.7 percent in 2017 showed an "unusually strong pick up in global growth."
She added nonetheless that "it's very obvious that the risks around the baseline forecasts have widened."
Overall, advanced economies are predicted to inch up to 1.8 percent and emerging markets should edge up 4.2 percent in 2017.
However, political uncertainty is clouding the outlook for major economies. Trump's campaign pledges to get tough on international trade could be a risk to the U.S. and global economy, the World Bank said.
"Because of the outsize role the United States plays in the world economy, changes in policy direction may have global ripple effects," Ayhan Kose, director of development economics prospects at the World Bank, said in the statement.
"More expansionary U.S. fiscal policies could lead to stronger growth in the United States and abroad over the near-term, but changes to trade or other policies could offset those gains," he added.
Trump's changes to corporate and income tax could increase U.S. gross domestic product (GDP) between 2 percent and 2.5 percent in 2017 and between 2.5 and 2.9 percent next year, the World Bank said.
A stronger U.S. economy would boost the global economy. According to the World Bank, a 1 percentage-point growth in the U.S. could boost other advanced economies by 0.8 percentage point after one year and emerging markets by 0.6 percentage point.
However, it is not yet clear what the benefits of tax cuts in the U.S. could be. "Everybody is really afraid of this tax bill for the moment because nobody knows where it's going," the chief executive of financial consulting firm J. Rogers Kniffen Worldwide Enterprises told CNBC last month.