(Yicai Global) Sept. 13 -- Ambitious initiatives such as China's One Belt, One Road can bring substantial development benefits to participating countries through improved infrastructure, greater trade, and higher cross-border investment, said World Bank Group President Jim Yong Kim in a press briefing at the 1+6 Round Table Dialogue on Sept. 12.

"We applaud the Belt and Road Initiative and are working to support it in any way we can," Kim said. "We hope to convene a meeting with China's government every six months during our Annual and Spring Meetings to maintain the initiative's momentum."

The global economy as a whole is in a period of growth, but this is not a time for complacency because escalating trade protectionism in major economies threatens to derail the rebound in global trade, Kim added. This could have severe consequences, especially for emerging markets and developing economies that rely on trade for growth and development.

"In January, we predicted that global growth would reach 2.7 percent in 2017, from a post-crisis low of 2.4 percent in 2016. Recent developments could result in better than expected global growth outcomes," he added. Growth momentum is driven by global manufacturing activity and trade, broadly stable financing conditions, and stabilized commodity prices.

Emerging markets and developing economies will continue to see an increase in demand for infrastructure investment driven by the need for regional integration and global trade, expanding middle classes, rapid urbanization and the urgency to lower emissions. The current level of investment in these economies, around USD1.3 trillion per year, is insufficient.

The sustainability of these new investments will require financing beyond what constrained government coffers can support, and the private sector can bring new technologies and operational efficiencies, Kim said. The World Bank needs to maximize financing for development by leveraging the private sector and optimizing the use of scarce public resources.

There's never been a better opportunity to attract capital that is desperate for higher returns, he added. There's currently more than USD10 trillion invested in negative interest rate bonds, USD24.4 trillion in low-yield government securities and USD8 trillion sitting in cash, waiting for better investment opportunities.