Government debt interest costs hit highest level since 2007

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Payments for interest are swallowed by the largest of the economic products of rich countries, since 2007 exceed their expenses on defense and apartments according to the numbers of the ICM.

Debt service costs as a percentage of GDP for 38 Oecd In 2024, the countries rose to 3.3 percent, the sharp rise in 2.4 percent of 2021, according to the group’s global debt report on Thursday. In contrast, the World Bank assesses the same group spent 2.4 percent of GDP in 2023 on their militants.

The interest in the United States was 4.7 percent of GDP in the United Kingdom 2.9 percent and 1 percent in Germany.

Credit costs increased as bond investors in large economies for stable inflation and Rising release Because many governments are expanding the costs of defense and other fiscal stimulus policy.

OECD warned that a double shot of growing yields and rising duty risked “Further Loan Limit Capacity Restricted Than Ever”. It highlighted the “complex perspective” for global debt markets.

Sovereign loan It is envisaged that in 2025 among the high-income group of countries. This channel of the debt issued a concern in countries with concerns such as Great Britain, France and even the United States.

The large burden of debt itself itself is “negative,” said Carmin Diian, the director of the OECD financial and enterprise.

But over the past 20 years, many loans have been spent from the 2008 financial crisis and the 19th epidemics of Sovzy, claiming that “now it is necessary to restore investments, such as infrastructure and climate projects.

“Borrowing should increase growth,” the governments eventually be able to “stabilize and actually reduce the debt-GDP ratio,” said De Noah.

But the picture is complicated Higher bond yieldwhich makes the refinancing more expensive.

The report states that almost 45% of the sovereign debt will ripen until 2027.

The increase in precious debt conditions is a changing profile of the owners of sovereign bonds, OECD said. Since politics, the cultivators hide the purchase programs of emergency bonds, the reserves of the Central Bank of the government bonds have fallen from their 2021 peaks and are expected to fall for another $ 1 this year.

This means private investors. Who said that “they are more sensitive” will make the difference? The sensitivity misses the issuers more instability and makes them more openly “increase geopolitical and macroeconomic uncertainty,” he added.