The United Nations expects the global economy to grow two-point-five percent this year if downside risks are kept at bay.

The UN Conference on Trade and Development(UNCTAD) issued the projection in a report published Thursday, adding that the world economy expanded by two-point-three percent last year, its slowest pace in a decade.

The UN agency said South Korea's growth is forecast to accelerate marginally to two-point-three percent from two percent last year, and that it and other East Asian nations are among the key drivers of growth in 2020.

UNCTAD predicts growth to remain weak in most advanced economies, however, including the United States. It added that Japan is likely to do better because of the Summer Olympics. 

The report said South Korea will increase its fiscal spending by eight percent this year, which will stimulate private consumption, while its exports will remain weak due to trade disputes with Japan.