The costs of government debt benefits have reached the highest level since 2007

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Benefit payments are swallowed up by the largest part of the economic output of the rich countries since 2007, and above their spending on defense and housing, according to figures from the Organization for Economic Cooperation and Development.

Debt service costs as a percentage of GDP to 38 OECD Countries rose to 3.3 percent in 2024, with a sharp increase of 2.4 percent in 2021, according to the group’s global debt report on Thursday. On the other hand, the World Bank estimates that the same group spent 2.4 percent of GDP on armies in 2023.

Interest costs were 4.7 percent of GDP in the United States, 2.9 percent in the UK and 1 percent in Germany.

Borrowing costs have increased in recent months, as bond investors are preparing for continuous inflation in large economies Edition height Since many governments have expanded defense spending and other financial stimulus policies.

The Organization for Economic Cooperation and Development has warned that the dual blow from the high yield and the growing debt risk “restricting the ability to borrow in the future at a time when investment needs are greater than ever.” The “difficult expectations” of global debt markets highlighted.

Sovereign borrowing It is expected that the group of high -income countries will reach a new record of 17 True in 2025, compared to 16 True in 2024 and 14 Trine in 2023, according to the OECD report. This wave of debt issuance has fueled concerns about sustainability in countries such as the United Kingdom, France and even the United States.

Carmin de Noya, director of the Organization for Economic Cooperation and Development for Financial Affairs and Institutions, said that the burden of the large debt itself is “not negative.”

However, a lot of borrowing has been spent over the past twenty years on the recovery from the 2008 financial crisis, Covid-19, on the pretext that “now there is a need to shift from a recovery to investment,” such as spending on infrastructure and climate projects.

“The borrowing must increase from growth” so that governments can eventually be “stable and reduce the debt to gross domestic product,” said De Nawa.

But the image is complicated Top bonds revenueWhich makes it more expensive to re -financing the current debt.

The report indicated that nearly 45 percent of the debts of the Organization for Economic Cooperation and Development will mature by 2027.

The Organization for Economic Cooperation and Development said that in addition to the conditions of exorbitant debt services is a variable profile for sovereign bond holders. Since policymakers cover up emergency bond purchasing programs, the central bank’s central bonds have decreased by 3 meters of their peak 2021, and it is expected to decrease by another dollar this year.

This means that investors from the private sector – who said De Naya “is more sensitive to prices” – will compensate for the difference. He added that the sensitivity leaves the two exporters open to more fluctuations and makes them more exposed to “the total geopolitical and economic uncertainty.”