The world economy is set to strengthen in 2014 according to projections by the World Bank.

The World Bank’s newly-released Global Economic Prospects (GEP) report showed accelerated growth in developing countries, with high income economies “finally turning a corner” after five years of global financial crisis.  The annual report warns, however that growth prospects “remain vulnerable” to rising global interest rates and the potential impact of the withdrawal of economic stimulus in the US.

The US Federal Bank has already started “winding down” it’s monthly bond buying programme, previously set to £52 billion a month.

The World Bank warned that some developing countries “could face risks” if the decrease of monetary stimulus measures set by the US Federal Bank was accompanied by market volatility.

“Growth appears to be strengthening in both high-income and developing countries, but downside risks continues to threaten the global economic recovery”, said Jim Yong Kim, World Bank Group President.

“The performance of advanced economies is gaining momentum, and this should support growth in developing countries in the months ahead. Still, to accelerate poverty reduction, developing countries will need to adopt structural reforms that promote job creation, strengthen financial systems, and shore up social safety nets.”

Global GDP growth is projected to rise from 2.4% in 2013 to 3.2% this year and stabilizing at 3.4% and 3.5% in 2015 and 2016.

Developing nations are expected to grow to 5.3% this year from 4.8% in 2013.

For small businesses and start-ups, this growth could result in UK banks easing up lending strategies and promote a more positive view of small business investment.