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 .
Global economy will suffer , the World Bank says in latest economic forecast . The World Bank has reduced its rate from 3.2 % to 2.8 % amid economic headwinds . Developed nations will have steady growth while developed economies will stay flat .