Global GDP growth is expected to be 3% in 2004 after a predicted 2% expansion in 2003, the World Bank said in its Global Economic Prospects 2004 report.
This year will be the third in a row of sub-par global performance, the report said.
'The world economy is not firing on all cylinders but current trends point to a better 2004,' said World Bank global trends analyst Hans Timmer.
Conditions in Europe and Japan remain 'extremely slack', the bank said, with growth in the euro zone expected to rise to 1.7% in 2004 from 0.7% this year, and in Japan to 1.3% from 0.8%.
It said the US is showing early signs of recovery, with rising orders, production, exports, and stock markets set to fuel growth of 3.4% in 2004 after a 2.2% expansion this year, it said.
Economic growth in the developing world, meanwhile, is expected to rise to 4.9% next year from 4% this year, gaining traction from a revival of world trade, fading global tensions and rekindled domestic demand.
Though the global outlook is improving, key threats remain, however, including the uncertain situation in the Middle East and continuing unrest in Iraq and the possible re-emergence of SARS next flu season.
