Downside risks continue to dominate the global growth outlook, the International Monetary Fund (IMF) argued in the spring edition of its World Economic Outlook (WEO).
That forecast comes as the slow economic recovery continues, although momentum has shifted back in favour of advanced economies, from emerging ones.
The Washington-based lender trimmed its projections for growth in the world economy by one tenth of a percentage point for this year and next, to 3.6% and 3.9%, respectively.
Within the major economies, and notwithstanding the upside risks for the United States, the United Kingdom and Germany, the possibility of protracted low growth - especially in the Eurozone and Japan - is a major concern.
While the estimated rates of growth in the Eurozone's gross domestic product (GDP) were kept at 1.2% and 1.5% for this year and next the IMF did shave its forecast for the expected path which consumer price inflation will follow in advanced economies to 1.5% and 1.6%, respectively, from 1.7% beforehand.
The UK is now seen growing by 2.9% in 2014, 0.4 percentage points more than in the January projections. Next year economic activity is seen clocking in at 2.5%, 0.3 percentage points more than in January.
In the case of emerging economies, the risks appear "localised" the agency charged with maintaining global financial stability said. Nevertheless, they must be on guard to weather market turmoil and the possibility that capital inflows might slow or reverse.
Hence, they should stand ready to reduce external vulnerabilities.
Interest rates expected to remain low
As is typically the case, the Washington-based lender's twice-yearly landmark analytical study covers ground relating to some of the most difficult issues facing policymakers worldwide at the time of writing.
It is for this reason that it has quite an extensive following amongst market watchers, who use it as one of the main references for their research.
Specifically, the latest edition includes the following subjects; the causes and trends behind financial market volatility in emerging market economies, lower-than-expected inflation in advanced economies and the withdrawal of monetary accommodation.
The latest edition of the WEO also studies the reasons behind the worldwide fall in real interest rates since the 1980s, while one chapter examines the factors which influence growth in emerging markets, including the role of China.
As regards to the decline in real interest rates since the 1990s, it finds that three factors have been chiefly responsible; increasing incomes in emerging economies, international reserves accumulation by that same group of countries and the increased riskiness of equities relative to bonds, and lower investment in advanced economies.
Those factors, which have been pressuring interest rates lower, will likely not revert soon, IMF staff believe.
In fact, interest rates are expected to remain so low that the risks posed by a zero nominal interest rate may re-emerge, "should risks of very low growth in advanced economies materialize".