Global debt markets remained resilient in 2025 despite borrowing levels reaching record highs, but increasing reliance on shorter-term bond issuance is raising refinancing risks, according to a report by the Organization for Economic Co-operation and Development (OECD) released on Wednesday.
In its Global Debt Report 2026, the OECD said governments and companies are increasingly issuing shorter-maturity bonds to reduce the impact of higher long-term interest rates.
Central government borrowing in OECD countries rose from $16 trillion in 2024 to $17 trillion in 2025 and is expected to increase further to $18 trillion this year.
Refinancing needs in these economies reached a record $13.5 trillion last year, accounting for about 80% of total gross borrowing.
Outstanding government bond debt climbed from $55 trillion in 2024 to a record $61 trillion, while the ratio of central government debt to GDP is projected to rise from 83% to 85% this year, the highest level since 2021.
In emerging markets outside the OECD, government bond issuance increased 21% year-on-year to $3.4 trillion in 2025, pushing total debt stock to a record $12.1 trillion.
The OECD said governments and companies are expected to borrow about $29 trillion from markets this year, up 17% from 2024, but warned that the shift toward shorter-term borrowing could increase refinancing risks.
The $109 trillion global government and corporate bond market remains crucial for financing both public and private sectors, particularly as funding needs grow for artificial intelligence investments and rising defense spending, the report said.
