The OECD's Global Debt Report 2025 reveals a challenging outlook for global debt markets. Governments and corporations globally borrowed $25 trillion in 2024, nearly three times the borrowing levels of 2007. Total government and corporate bond debt surpassed $100 trillion in 2024. While central banks are beginning to lower policy rates, bond yields in many major markets are rising, and country and corporate indebtedness has increased.
The report highlights that OECD government bond issuances reached $16 trillion in 2024 and are projected to hit a record $17 trillion this year. Emerging markets have also seen a sharp increase in borrowing, with bond issuance rising from $1 trillion in 2007 to over $3 trillion in 2024. However, some corporate and emerging market issuers are facing difficulties accessing the market.
The OECD warns that geopolitical tensions and trade uncertainties could disrupt international portfolio flows. Debt markets must overcome challenges to finance long-term, sustainable growth amid increased macroeconomic uncertainty.