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The World Bank downgraded its global growth outlook, as developing countries face tough transition with high borrowing costs and lower commodity prices in 2015. The organization also urged the Federal Reserve to hold off raising rates until the next year, citing the risks it may pose to emerging markets.

"Developing countries were an engine of global growth following the financial crisis, but now they face a more difficult economic environment," said World Bank Group President Jim Yong Kim.

Japan's economic growth is seen at 1.1 percent compared to the 1.2 percent estimated previously. The Japanese economy is expected to grow 1.7 percent in 2016 and 1.2 percent in 2017.

In China, the carefully managed slowdown continues, with growth likely to moderate to a still robust 7.1 percent this year, the lender noted. In 2016 and 2017, growth is forecast to be 7 percent and 6.9 percent, respectively.

In India, which is an oil-importer, reforms have buoyed confidence and falling oil prices have reduced vulnerabilities, paving the way for the economy to grow by a robust 7.5 percent rate in 2015. The growth is expected to pick up further to 7.9 percent in 2016 and to 8 percent in 2017.

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