The total government bond debt by the Organization for Economic Co-Operation and Development (OECD) countries is projected to increase to $56 trillion in 2024, up by $2 trillion compared to 2023, a report said Thursday, APA reports citing Anadolu Agency.
The OECD's Global Debt Report said the 38 governments and firms in the group are required to address key risks from a sharp increase in global bond borrowing.
The report noted that the global bond debt was at $30 trillion in 2008.
"Low interest rate environment post-2008 opened bond markets to a wider range of issuers, including lower rated governments and companies, expanding the riskier market segments and contributing to the rapid growth of the sustainable bond market – a market segment focused on bonds that finance or re-finance green and social projects," it said.
“A new macroeconomic landscape of higher inflation and more restrictive monetary policies is transforming bond markets globally at a pace not seen in decades,” OECD Secretary-General Mathias Cormann said in the report.
"This has profound implications for government spending and financial stability at a time of renewed financing needs,” he added.
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