OECD, debt rises to record level of $109 trillion

There is no stopping the growth of government and corporate debt, which reached $109 trillion globally in 2025 from $100 trillion in 2024. However, despite geopolitical tensions and the tariffs war, debt markets have been resilient with moderate volatility and abundant liquidity. "This superficial stability, however, masks deeper structural developments that could suddenly materialise and increase risks if current macro-trends continue," explains Carmine Di Noia, director for financial and enterprise affairs at the OECD, the Organisation for Economic Co-operation and Development in presenting the latest Global Debt Report.

As borrowing costs continue to rise, especially on longer maturities, due to the structural decline in demand and concerns about fiscal trajectories, 'governments and corporates are responding by shifting their issuance to shorter maturities, which, while mitigating the impact of rising interest expenses, also exposes them to greater refinancing risk,' Di Noia added.

For the OECD countries alone, outstanding debt now stands at a record $61 trillion, up from $55 trillion in 2024, or 83% of GDP in OECD countries, but expected to rise to 85% in 2026, 39 percentage points higher than in 2007, before the global financial crisis. Much of the increase in lending is for refinancing existing debt. In 2025, sovereign refinancing needs in the OECD reached a record high of about USD 13.5 trillion, accounting for almost 80% of gross issues.

Among the G7 countries, the international organisation points out, "the debt/GDP ratio remained unchanged with respect to 2020 in Canada, the United States and the United Kingdom. In France and Germany," the OECD continues, "it was respectively 5 and 2 percentage points higher. Italia has the second highest debt-to-GDP ratio in the OECD area, but in 2025 the value was 11 points below the pandemic peak' but what is important 'is to have a credible fiscal trajectory...and I think the Italian economy is doing well,' Di Noia commented

At about USD 3.5 trillion, net requirements remained stable in 2025, but remain substantially above pre-pandemic levels, and are expected to grow in 2026, reaching the highest level since 2020.