The bank’s new forecast is that the world economy will expand by 3.1% this year before slowing slightly.
It will be the first time since the financial crisis that growth is operating at its full potential.
However, the report warns the upswing will be short term, with gains in improving living standards and reducing poverty levels at risk long term.
For the immediate future, the bank sees a reasonably upbeat prospect.
The bank’s president Jim Yong Kim said: “The broad-based recovery in global growth is encouraging”.
The forecast is better than what the bank was expecting in its previous assessment last June.
Among the large economies, the up-rating is especially marked for the eurozone, though the bank still thinks it will slow somewhat this year, but by less than its previous forecast.