FX.co ★ OECD: total volume of sovereign and corporate bond debt equals global GDP

The Organization for Economic Cooperation and Development (OECD) estimated that the world’s total GDP equaled the debt in sovereign and corporate bonds held by OECD countries. Remarkably, both indicators topped the $100-trillion landmark. These figures were calculated by the OECD at the end of 2023.

Experts say that such mind-boggling debt has been accumulated as a result of expansionary monetary policies pursued by major central banks in response to the world’s financial crisis of 2008.

In the last 15 years, the debt of the countries participating in the OECD has ballooned from $15 trillion to $24 trillion. Interestingly, the US doubled its share compared to other members. Roughly 40% of government bonds are due for repayment in 2026.

Corporate bonds have also set record highs. Their total worth zoomed up from $21 trillion to $34 trillion. One third of them will be mature in three years.

Last but not least, yields of China’s short-term government bonds sank to 2.94%, the lowest rate since 2007, thus confirming high demand for this financial instrument.