Debt-to-GDP - Historical Chart
Nonfinancial Corporate Business; Debt Securities and Loans; Liability, Level / GDP. Gray shaded areas indicate U.S. recessions.
Source: Federal Reserve Bank of St. Louis (FRED), Series NCBDBIQ027S. Shaded areas = NBER recession dates. Updated 2026-03-09.
What the Q3 2025 Data Shows
At 8,722,420.0, the debt-to-gdp in Q3 2025 is above the 10-year average of 7,415,320.8 by 1307099.25. The reading has been mixed recently, fluctuating without a clear directional trend over the past 4 quarters.
What This Metric Measures
This page tracks total debt (bonds and loans) owed by nonfinancial corporations as a percentage of U.S. gross domestic product. The data comes from the Federal Reserve Bank of St. Louis FRED database, series NCBDBIQ027S, updated quarterly.
Historical Context
The all-time peak was 8,722,420.0 in Q3 2025. The all-time trough was 24,000.0 in Q4 1945. During COVID-19 in 2020, the reading hit 7,688,608.0 (Q4 2020). Year-over-year, the metric has moved 2.3%.
Why It Matters
The corporate debt-to-GDP ratio measures how leveraged American businesses are relative to the size of the economy. When this ratio is high, businesses are more vulnerable to interest rate increases and economic slowdowns because their debt service costs consume a larger share of revenue.
What This Means for Business Owners
Understanding where this metric stands relative to historical norms helps business owners make better borrowing decisions. Metrics far from their 10-year average often signal turning points that affect the cost and availability of credit.
Corporate Debt-to-GDP Ratio - Frequently Asked Questions
U.S. nonfinancial corporate debt-to-GDP is 8722420.00% as of Q3 2025 per FRED series NCBDBIQ027S. This includes bonds, bank loans, and other debt instruments owed by non-bank corporations.
The ratio spiked to its highest level during COVID in 2020 when GDP contracted while corporate borrowing surged. It has since moderated as GDP recovered but remains elevated by historical standards.
High leverage means businesses must devote a larger share of cash flow to debt service. When interest rates rise, over-leveraged companies face a profitability squeeze that leads to layoffs, reduced investment, and in extreme cases, defaults.
U.S. nonfinancial corporate debt-to-GDP is moderate compared to China (over 150%) and Japan, but higher than many European countries. The quality of the debt (mostly long-term fixed rate) is a relative strength.
Real estate, utilities, and telecom have the highest debt-to-equity ratios. Technology companies generally carry less debt. Private equity-backed companies have among the highest leverage ratios in the corporate universe.
FRED series NCBDBIQ027S, derived from the Financial Accounts of the United States (Z.1) published quarterly by the Federal Reserve.