Global financial giant, Citi has said in a new report that the global economy is likely to grow at 2.6 per cent during 2013.

Citi also increased its forecast from 3.1 per cent to 3.2 per cent for 2014 at current exchange rates. It released the new "Global Economic Outlook and Strategy" report that includes economic data and forecasts about major economies from around the world. The 4-page report has been prepared by the number of economists led by Chief Economist Willem Buiter.

Buiter wrote in the report, "For 2013, the advanced economy upgrade is offset by a slight downgrade to our forecasts to leave our global growth forecast at 2.6%, while we are edging up our 2014 global growth forecast from 3.1% to 3.2%."

The economist expects the Chinese economy to grow at 7 to 8 per cent this year and 7-71/2 per cent every year in 2014- 2017. Writing about the European region, Buiter said the GDP growth is expected to fall and has cut its forecast.

Buiter also wrote that major central banks around the world will keep their monetary policy liberal and are likely to lower rates further in order to boost economic growth. The report noted that Fed and BoJ will engage in asset purchase while ECB is planning rate cuts and BoE has renewed QE.