The total government bond debt by the Organization for Economic Co-Operation and Development (OECD) countries is projected to increase to $56 trillion in 2024, up by $2 trillion compared to 2023, a report said Thursday, Paralel.Az reports citing Anadolu Agency.

The OECD's Global Debt Report said the 38 governments and firms in the group are required to address key risks from a sharp increase in global bond borrowing.

The report noted that the global bond debt was at $30 trillion in 2008.

"Low interest rate environment post-2008 opened bond markets to a wider range of issuers, including lower rated governments and companies, expanding the riskier market segments and contributing to the rapid growth of the sustainable bond market – a market segment focused on bonds that finance or re-finance green and social projects," it said.

“A new macroeconomic landscape of higher inflation and more restrictive monetary policies is transforming bond markets globally at a pace not seen in decades,” OECD Secretary-General Mathias Cormann said in the report.

"This has profound implications for government spending and financial stability at a time of renewed financing needs,” he added.