The global economy is set to expand by 3.1% in 2018, slightly higher than the growth rate of 3% last year, the World Bank has said.

It will also mark the first year since the 2008 Great Recession that it will near or achieve full growth potential, the Bank added. 

In an update of its twice-yearly economic report, the World Bank however warned that the economic upswing this year was temporary unless governments adopted policies that would focus on increasing workforce participation. 

The pace of world growth was expected to moderate to 3% in 2019 and 2.9% in 2020, it said. 

Most of the growth will be driven by emerging economies, in particular commodity exporters, with growth rates for the group as a whole rising to around 4.5% in 2018 and an average of 4.7% in 2019 and 2020, the Bank said. 

By contrast, growth in developed economies is projected to slow to 2.2% in 2018, from 2.3% last year, as central banks gradually remove their post-crisis monetary policies and investment levels off.  

"Over the longer term, slowing potential growth - a measure of how fast an economy can expand when labour and capital are fully employed - puts at risk gains in improving living standards and reducing poverty around the world," the Bank said in its January 2018 Global Economic Prospects. 

The fastest-growing region in the world, according to the World Bank, is East Asia and the Pacific with China's economy expected to grow at a 6.4% clip this year before slowing to 6.3% next year. 

In India, GDP growth is expected to reach 7.3% in 2018 before strengthening slightly in 2019/2020 to 7.5%, the World Bank projected. 

In poorer countries in Africa, Latin America, the Middle East and Asia, economic growth is expected to expand to 5.4% in 2018 as commodity prices firm but not as much as previously expected.

Growth in Sub-Saharan Africa is forecast to reach 3.2% this year and 3.5% in 2019, the World Bank said.

Ghana is the fastest-growing economy in Africa with gross domestic product growth seen reaching 8.3% in 2018, followed by Ethiopia at 8.2%. 

In Latin America, the strongest growth is expected to comefrom Panama at a clip of 5.6%, while Venezuela's economy is expected to contract 4.2% this year.
           
The World Bank also projected that global oil prices would average $58 a barrel in 2018, edging up to $59 per barrel in 2019.