1st LD: World Bank lowers 2015 global growth to 3 percent

The World Bank on Tuesday lowered its global economy growth forecasts for 2014 and 2015.

In its latest flagship report Global Economic Prospects, the World Bank projected the global economy to grow 2.6 percent in 2014 and 3 percent in 2015, down 0.2 percentage point and 0.4 percentage point from its June forecasts, respectively.

Ayhan Kose, director of Development Prospects at the World Bank, described the world economy as "disappointments we saw in 2014, divergences we are observing around, and expectations going forward."

The weaker than expected growth in 2014 is partly due to a string of disappointing growth outcomes in the EU area, Japan, Latin America, and emerging Europe, especially Russia, Kose said.

Despite disappointing growth in 2014, the global economy will continue improving in 2015, boosted in part by soft oil prices, a strong U.S. economy, continued low global interest rates, and receding domestic headwinds in several large emerging markets, said the global development lender.

However, the Washington-based agency said the outlook will remain under downside risks, such as persistently weak global trade, possibility of financial market volatility as interest rates in major economies rise on varying timelines, low oil prices ' straining impact on oil-producing countries, and the risk of a prolonged period of stagnation or deflation in the euro area or Japan. Endite