Global GDP growth is projected to slow from 3.3 percent in 2024 to 2.9 percent in 2025 and 2026, the Organization for Economic Cooperation and Development (OECD) said on Tuesday.
In its latest Economic Outlook, the OECD revised down its global growth forecast for the two years by 0.2 and 0.1 percentage points, respectively, from its March forecast, citing a technical assumption that existing tariff rates as of mid-May will remain in place, despite ongoing legal disputes.
The organization warned that if current trends persist -- such as rising trade barriers, tighter financial conditions, weakening business and consumer confidence and increased policy uncertainty -- they could significantly undermine global growth prospects.
The OECD forecast that, due to factors such as uncertainty in trade and economic policies, the U.S. economy will grow by 1.6 percent this year, 0.6 percentage points lower than its March projection, making it one of the major economies with a notably significant slowdown in growth.
Unlike the trend of easing inflation expectations among G20 countries, the overall inflation forecast for the U.S. this year was raised by 0.4 percentage points from the organization’s March forecast to 3.2 percent.
OECD lowers global GDP growth projection in 2025, 2026
OECD lowers global GDP growth projection in 2025, 2026
OECD lowers global GDP growth projection in 2025, 2026
A major port in northern Venezuela came under U.S. airstrikes in the early hours of January 3, which caused extensive damage to civilian infrastructure, destroyed critical medical supplies in a warehouse, and severely impacted centuries-old cultural heritage sites, according to local residents.
The La Guaira Port, a vital hub for imports that support daily life in the region, was heavily damaged during the attack.
Large quantities of medical supplies stored at the port were destroyed. A historic cultural building dating back for some 300 years was also badly damaged by the bombardment.
Residents living near the port recalled the terrifying scenes as explosions shook nearby neighborhoods.
Humberto Bolivar, who lives in a community separated from the port by only a main road, said the blast waves shattered his home's windows, while stray shrapnel struck the water tank on his roof. According to reports, three missiles were fired at the port that night.
Bolivar said that beyond material losses, he is most concerned about the psychological impact on his children, who remain too frightened to leave their home days after the attack.
"The United States invaded our country. The children were frightened. This is not good for them, because it leaves some children with psychological trauma. They do not want to go to school or leave the house, because they are afraid that something worse might happen. We truly do not want this to happen to our country," he said.
Apart from civilian facilities, local cultural heritage site was also affected.
The La Guaira state government building, a structure with nearly 300 years of history and once served as the site of Venezuela's first national customs office, was struck by the force of the explosions.
Windows of the building were shattered, and furniture scattered across the floor.
"As people of La Guaira, we feel deep pain. Our cultural heritage has been bombed. We are living in constant anxiety and suffering, and life can no longer be the same as it was before," said a local named Henry Cumares.
The U.S. side has claimed the airstrikes targeted warehouses allegedly used to store narcotics. However, locals refuted such accusation.
"According to what Donald Trump said, they bombed this place using the excuse that the warehouses here were used to store drugs at the port. But based on the video released by our governor, these warehouses that were burned contained medicine for kidney patients and foods. Many people depend on these supplies to survive. I think the bombing is extremely despicable," said a local resident named Alejandro Capriles.
US strike hits Venezuelan port, wrecking medical supplies, heritage building
