Global GDP growth is projected to decrease from 3.3 percent in 2024 to 3.2 percent in 2025 and further to 2.9 percent in 2026, the Organization for Economic Cooperation and Development (OECD) said Tuesday in its latest Economic Outlook.
According to the OECD, the downward revision from its previous forecast is due to "front-loading ceases and higher tariff rates and still-high policy uncertainty" that dampen investment and trade.
The global growth in first half of 2025 was more resilient than anticipated, especially in many emerging-market economies. Industrial production and trade were supported by front-loading ahead of higher tariffs, the report noted.
The report shows that the tension in financial markets across both developed and emerging economies have been eased, with the rising of asset prices and improvement of credit supply. However, due to risks like increased tariff rates, mounting inflationary pressure and fiscal vulnerabilities in certain economies, global economic growth could be negatively impacted.
The strong investment in the AI sector in the U.S. is being offset by high level of uncertainty sparked by the country's domestic economic policies, the report said. It is projected that the U.S. economic growth rate will be 1.8 percent in 2025 and 1.5 percent in 2026.
Since May, U.S. bilateral tariff rates have increased on almost all countries. The OECD estimated the effective U.S. tariff rate rose to 19.5 percent at the end of August, the highest level since 1933.
In addition, the eurozone's economy will rebound slightly, with growth anticipated to reach 1.2 percent, according to the OECD.
Global GDP growth projection revised down to 3.2 pct in 2025, 2.9 pct in 2026: OECD
At least four people were killed, and ten others injured after Israel attacked a hotel in the Lebanese capital Beirut early on Sunday, the Lebanese Ministry of Public Health said.
Israeli forces launched a drone attack at dawn, targeting a room at the Ramada hotel in the heart of the city. Following the strike, Israel said that the targets were key commanders of the Lebanon Corps of Iran's Islamic Revolutionary Guard Corps (IRGC) Quds Force.
The drone attack was the first Israeli attack on central Beirut since hostilities between Israel and Hezbollah resumed, according to media reports.
The Ramada Hotel is located in Beirut's Raouche area, a popular tourist district near the landmark Pigeon Rocks along the Mediterranean coast.
All the windows in the targeted hotel room were shattered, and several adjacent rooms and the exterior facade of the hotel building were also damaged by the airstrike, according to a China Media Group reporter at the scene.
Witnesses said the area had been considered safe, and many displaced people fleeing southern Lebanon and the southern suburbs of Beirut had taken refuge here, with some staying in hotels and others sleeping in their cars along nearby roads.
"At night, it was quiet until 1:35; there were no sounds of drones or anything at all. Suddenly, we heard something like a shell—very loud. We thought it was a warplane bombing in the area. We ran and saw smoke coming from the hotel, and glass was scattered in the streets. There was black smoke and dust. We ran to the Ramada hotel on the fourth floor, where flames were coming out. People began to exit, ambulances and information branch personnel arrived, and crowds formed," said Shawki Sharifi, an eyewitness.
Another eyewitness said the area was blocked after the attack, and the injured were taken to hospitals for treatment. Authorities said that there were fatalities at the scene.
On Sunday evening, the Israel Defense Forces (IDF) issued a statement, saying that the Israeli Navy carried out a precision strike on Beirut, targeting five senior commanders of Iran's IRGC Quds Force who were meeting at a hotel in the city.
The IDF said that the five commanders, "hiding in a civilian hotel," were all killed in the operation. The commanders had served in the Lebanese and Palestinian branches of IRGC and were involved in providing funding and intelligence to Hezbollah and Hamas, the IDF said in the statement.
The Lebanese authorities have not provided more details about the victims or the incident.
At least 4 killed, 10 injured in Israeli strike on hotel in Beirut
