Industrial subsidies hit highest levels since 2008-2009 financial crisis, OECD | Report

Industrial subsidies across 15 key sectors have climbed to their highest levels relative to revenue since the 2008-2009 global financial crisis, according to a press release issued on 1 June 2026 by the Organisation for Economic Co-operation and Development (OECD). The newly public OECD MAGIC Database of Industrial Subsidies offers a firm-level view of the support measures shaping global trade. It tracks subsidies received by 525 of the world’s largest industrial firms between 2005 and 2024. The dataset covers government grants, tax concessions, and below-market finance across regions and sectors. The findings will feed into discussions at the OECD Ministerial Council Meeting beginning on 3 June 2026.

The meeting will be held under the theme “Getting Industrial Policies Right for Open Markets, Growth and Prosperity.” The report finds that total subsidies across the 15 key industries reached 1.3% of firm revenue, totaling USD 108 billion in 2024. That figure represents the second highest level relative to revenue on record. The peak occurred in 2009, when a drop in sales during the global financial crisis pushed up the subsidy-to-revenue ratio. The 2009 spike in below-market borrowings is largely explained by the financial rescue of large OECD carmakers during that period.

While subsidy levels have risen across most regions, firms in China continued to receive significantly higher support than their competitors elsewhere. Between 2005 and 2024, Chinese firms received, on average, three to eight times more government support than firms in OECD countries, depending on the region. Around 22% of global market share gains by firms that expanded over the past two decades can be linked to the subsidies they received. That figure rises to 60% for Chinese firms. However, while subsidies increased firms’ market shares, they did not lead to significant gains in productivity or profitability.

Renewable energy equipment, semiconductors, and heavy industries were among the most subsidized sectors covered by the database. Between 2005 and 2024, the production of solar photovoltaic panels, semiconductors, aluminium, steel, and shipbuilding received the highest levels of support relative to firms’ sales revenues. Companies with significant state ownership also played a major role as both recipients and providers of subsidies. Firms with state ownership above 25% received substantially more support than private competitors, especially through grants and below-market borrowings.

“Large and persistent industrial subsidies can distort global markets, creating unfair competitive advantages and contributing to excess supply capacity,” said OECD Secretary-General Mathias Cormann.

Cormann added that reliable data is key to monitoring how subsidies shape global markets. He noted that the OECD MAGIC database helps countries build a shared understanding of the challenges, paving the way for coordinated efforts to make the global trading system fairer. Lack of transparency remains a key challenge for understanding the scale and scope of industrial subsidies. Unlike approaches based on government disclosures, the MAGIC database tracks subsidies actually received by firms. This firm-level approach allows it to measure support provided globally, including at subnational level and in economies where public reporting is limited.