World Bank Cuts Growth Outlook, Still Sees FY15 Uptick

The World Bank cut its global growth outlook late Tuesday but still sees an uptick this year, boosted in part by soft oil prices, a stronger U.S. economy and continued low interest rates.

The worldwide economy will expand by 3 percent this year and 3.3 percent in 2016, according to the bank, which makes loans to developing countries for infrastructure as part of the United Nations Development Group.

Previously, the bank expected a 3.4 percent average rate of economic growth in 2015 and and 3.5 percent in 2016.

Worldwide growth in 2014 averaged 2.6 percent according to the bank.

The U.S. economy will expand 3.2 percent this year, from 2.4 percent in 2014, before its growth moderates to 3 and 2.4 percent in 2016 and 2017.

In the Euro Area, low inflation could be protracted and the bank forecast growth of 1.1 percent in 2015, rising to 1.6 percent in 2016-17, the bank said.

In Japan, growth will rise to 1.2 percent in 2015, from 0.2 percent in 2014.

World Bank Group President Jim Yong Kim said it's "critical for countries to remove any unnecessary roadblocks for private sector investment," adding that the private sector is "by far the greatest source of jobs."

Kim, who holds an M.D. and Ph.D. degrees from Harvard University, was named to head the World Bank in 2012 by President Obama, and previously headed Dartmouth College.