In 2024, government debt payments in OECD nations reached their highest levels since 2007, surpassing expenditures on defense, police, and housing. Debt service costs rose to 3.3% of national income, up from 2.4% in 2021, largely due to pressures from green transitions, defense spending, and aging populations. In response, governments are expected to balance increased capital spending against slashed daily budgets. OECD members collectively borrowed $15.7 trillion, accumulating a total debt of $55 trillion, indicating a troubling trend towards prioritizing debt servicing over essential public services.
The soaring costs of servicing government debt have outstripped other critical spending areas, including defense and public safety, presenting serious challenges for national budgets.
In 2024, the debt service costs as a percentage of national income hit 3.3%, emphasizing how pressing the financial pressures are on OECD governments.
OECD member countries raised a staggering $15.7 trillion in new borrowing in 2024, revealing the magnitude of their debt challenges on a global scale.
The shift towards servicing debt over funding public services shows a disturbing trend in fiscal priorities, particularly as deficits grow and interest payments escalate.
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