OECD projects global borrowing to soar to $29t by 2026
Governments and corporations raise debt as borrowing and market shifts rise.
Governments and corporations are expected to borrow a record $29t from bond markets in 2026, an increase of $4t, or 17%, compared with 2024, according to the Organisation for Economic Co-operation and Development (OECD).
In its Global Debt Report 2026: Sustaining Debt Market Resilience Under Pressure, the OECD found that central government borrowing in OECD countries continued to grow in 2025, reaching $17t, and is projected to rise further in 2026.
Outstanding sovereign bond debt stood at $61t at the end of 2025, with central government debt relative to GDP in OECD countries projected at 85% in 2026.
Corporate borrowing also remained high in 2025, with total market issuance of $13.7t and outstanding corporate bonds and syndicated loans totaling $59.5t.
The report identifies continued borrowing to fund capital expenditures in sectors such as technology, including artificial intelligence, as a factor contributing to corporate debt levels.
Nine major technology companies raised $122b from bond markets in 2025, with cumulative capital expenditure plans of $4.1t between 2026 and 2030.
The OECD report notes that higher long-term interest costs have encouraged both sovereign and corporate issuers to shift toward shorter-term maturities, and that elevated interest rates have increased the cost of long-term borrowing, including 30-year yields across most countries in 2025.
Changes in the investor base were highlighted, with central banks reducing their share of government debt holdings, whilst price-sensitive investors such as hedge funds and households now hold a larger proportion of sovereign bonds.
The report states that this shift may influence market dynamics and debt absorption.
The OECD report also observes that corporate credit spreads remain near historical lows, and that corporate debt issuance continues to grow, particularly in sectors with high capital expenditure requirements.
