The Organization for Economic Co-operation and Development, a Paris-based research group for advanced economies, warned Wednesday that governments will need to rein in or reallocate spending as debt-servicing costs consume a growing share of public budgets. (The Logic)

Talking point: The average 10-year government bond yield across G7 countries has reached four per cent this year for the first time since 2008, according to the Financial Times. OECD data shows government interest expenditures reached 3.3 per cent of the members’ combined GDP in 2025, close to a decade-high. The OECD said stronger efforts are needed to ensure the sustainability of public finances as rising sovereign yields add to fiscal pressures. Meanwhile, the organization projected global growth of 2.9 per cent in 2026, up from its June forecast of 2.8 per cent, supported by rapid AI investment, despite the global energy shock. Canada was an exception: the OECD cut its 2026 growth forecast to 0.9 per cent from its 1.2 per cent prediction in March, and its 2027 forecast to 1.3 per cent from 1.7 per cent.

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