London (CNN) -- The global economy will slow more than expected this year after being hit by the Ukraine crisis, market volatility and bad weather in the U.S., the World Bank says in its latest forecast.
The bumpy recovery from crisis and emergence of new economic headwinds has prompted the World Bank to cut its global growth forecasts from 3.2% to 2.8%. However, its Global Economic Prospects report says the economy will improve later in 2014.
Growth should then expand to 3.4% in 2015, ratcheting up another 0.1% in 2016, the report says. The acceleration will largely be from high-income countries such as the U.S. and euro area, as the markets recover and there is a "steady release of pent-up demand," it says.
Growth in developing markets will remain flat, staying under 5% for 2014 but it will expand next year, the report said.
Restructuring in developed markets has offset ongoing risks from the crisis, the report notes, but "more needs to be done."
Countries such as those in Europe, along with Japan and the U.S., must ensure they wind down their stimulus programs in an orderly way, it said.