Executive perceptions regarding Debt (public, corporate, household) FIGURE 39 Source World Economic Forum Executive Opinion Survey 2025.Executive Opinion Survey rank of national risks from the question “In your country, what are the top ﬁve risks that are most likely to pose the biggest threat to your country in the next two years?”. 1st10th20th30th34thRank Meanwhile, about one-third of global corporate debt, a rising proportion of which is used for making interest payments on existing debt rather than being used for productive investment, will also need refinancing over 2025–2027.56 Added to these needs, the volume of debt likely to be issued by companies building out AI infrastructure could be huge; according to one estimate, it could reach $1.5 trillion in investment grade bonds alone over the next five years.57 While it is possible that markets digest the upcoming high volumes of public and corporate debt issuance smoothly, there are risks of heightened bond market volatility in some countries, similar to what happened in the United Kingdom in 2022, when a proposed shift in fiscal policy, alongside a technicality related to pension fund liabilities, contributed to a sell-off in the gilt market.58 Spikes in bond prices globally could, in turn, uncover further risks in less-regulated areas of credit markets that have taken on greater importance in recent years. Concerns about non- bank financial institutions – financial intermediaries operating outside of banking regulations – and especially private credit are steadily mounting following bankruptcies in relatively peripheral areas of the market in the second half of 2025,59 with the Financial Stability Board noting in November 2025 that the sector warrants close monitoring.60 Private credit is increasingly attracting retail investors, despite potential liquidity risks in the event of a crisis.61 Many governments and companies have a range of tools at their disposal to push debt problems further into the future, well beyond the two-year time horizon.62 However, as governments potentially spend more on debt servicing in an environment of already strong fiscal pressures, less support will be available for driving economic growth. According to the EOS, countries where debt is ranked high as a major risk are also those where recession or stagnation fears are elevated. Government responses to increasingly unsustainable fiscal outlooks will differ across countries but are likely to focus on attempting to generate strong economic growth and lower real interest rates, while directing spending to strategic sectors. Some governments may be forced by bond-market volatility to retrench towards more fiscal austerity, which would lead to severe short- to-medium-term negative impacts on household Global Risks Report 2026 42