Global Debt Exceeds $100 Trillion, Growth Forecast for 2025

In 2024, global governments and companies raised a record $25 trillion in the markets, which is $10 trillion above pre-pandemic levels and three times more than in 2007. The total amount of global debt from sovereign and corporate bonds has surpassed the $100 trillion mark.

This is reported by AgroReview

This information is included in the annual report by the Organisation for Economic Co-operation and Development (OECD), published on March 20. Forecasts indicate that debt levels will continue to rise in 2025.

Future Forecasts

The ratio of government debt to gross domestic product (GDP) in OECD countries is expected to reach 85%, which is 10 percentage points higher than the 2019 figure and nearly double that of 2007. The issuance of sovereign bonds in these countries in 2024 could reach a record $17 trillion, compared to $16 trillion in 2024 and $14 trillion in 2023.

The amount of government debt in circulation will increase to nearly $59 trillion in 2025, up from $55 trillion in 2024 and $54 trillion in 2023. For the first time since 2020, the “debt to GDP” ratio in 2024 rose to 84% from 82% in 2023 due to a slowdown in global economic growth. This figure could reach 85% in 2025. OECD countries’ interest expenses in 2024 increased to 3.3% of GDP, while in the previous year they were 3%.

State of Corporate Debt

Additionally, the total amount of outstanding corporate debt worldwide is expected to reach $35 trillion by the end of 2024. The United States remains the leader in the corporate bond market with a figure of $11.4 trillion, where over 60% of the debt is held by non-financial companies. China ranks second with $6.7 trillion, where more than 60% of the debt belongs to financial institutions. According to the report, approximately 42% of government debt and 38% of corporate debt is scheduled to mature in the next three years.