The Paris-based Organisation for Economic Cooperation and Development (OECD), expects gross borrowing requirements to fall from US$10.8 trillion to US$10.6 trillion this year. However it said debt ratios remained high and were growing, as governments struggle with ”concerns about increased market and liquidity risks, higher long-term interest rates and obstacles to global growth”.

Gross public debt in OECD countries is expected to topple the WWII record of 116 per cent of GDP, hitting an estimated 117 per cent in 2014. The OECD represents 34 developed countries, including Australia, US, Japan and euro zone member states.

The organisation has also stated that relying on the triple-A rating exclusively to measure the safety of sovereign debt is ”hazardous” and ”not very reliable”.

Source: The Age