Apart from India, the baseline forecast projects a moderate growth recovery in 2015 and 2016 for almost all emerging economies, including Brazil, Indonesia, Mexico, Russia, South Africa and Turkey.

“While some economic indicators are positive and moving in the right direction which points to the potential for a gradual return to consistent economic growth, many risks and uncertainties could dash efforts to get the global economy on track and moving forward,” Director of the Development and Policy Analysis Division for the UN Department of Economic and Social Affairs Pingfan Hong said.

The U.S. economy is expected to improve in 2015-2016, with GDP projected to expand by 2.8 and 3.1 per cent, respectively.

The forthcoming further normalization of the U .S. Federal Reserve’s monetary policy posed significant risks and uncertainties for the global economic outlook, depending on the timing and strategy of the monetary tightening, as well as the response by financial markets, the report said.

Only a slight improvement in growth is expected in Western Europe from 1.7 per cent in 2015 to two per cent in 2016.

The region is held back by the travails of the euro area, where the level of GDP has yet to regain its pre-recession peak. To reduce risks and meet challenges, the report says, it is imperative to strengthen international policy coordination.

In particular, macroeconomic policies worldwide should be aligned toward supporting robust and balanced growth, creating productive jobs, and maintaining long-term economic and financial stability