Global government issuance of US dollar debt is declining as countries seek alternatives amid rising interest rates and economic uncertainties. This trend is expected to continue into 2025, with many governments exploring local currencies and other financial instruments to manage their debt. The shift reflects a broader strategy to reduce reliance on the US dollar, which has been a dominant currency in global finance for decades. This change could lead to increased volatility in currency markets and impact the cost of borrowing for governments worldwide.

The decline in US dollar debt issuance is part of a larger trend where global public debt is projected to exceed $100 trillion, raising concerns about sustainability and economic stability. Reports indicate that sovereign debt could rise significantly, with estimates suggesting it may approach $130 trillion by 2028. This situation is compounded by large government budget deficits and the potential for increased borrowing costs, which could affect economic growth and investment strategies across various sectors.