OECD Government Interest Costs Hit Record $2.24 Trillion in 2025
Gross interest expenditure across OECD countries rose by $180 billion year-over-year in 2025 to a record $2.24 trillion, with the US accounting for about 65% of the total.
OECD governments paid a record $2.24 trillion in gross interest in 2025, an increase of $180 billion from the previous year. It was the fourth straight annual rise, lifting total interest costs by $960 billion over that stretch.
The United States made up roughly 65% of the total at $1.45 trillion, while the European Union represented about 18%, or $400 billion. Measured against global GDP, gross interest costs reached about 3.2% last year, the second-highest level in at least two decades.
Government borrowing shows no sign of slowing. OECD countries are projected to issue another $18 trillion in debt in 2026, which would be the largest annual borrowing total on record.
Source: The Kobeissi Letter