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Subsidies across 15 key industrial sectors have reached their highest levels relative to revenue since the 2008-2009 global financial crisis, a new OECD report finds. The OECD MAGIC Database of Industrial Subsidies, now available to the public, provides a firm-level view of industrial subsidies, offering new insights into how they shape global trade flows. The database tracks subsidies received by 525 of the world's largest industrial firms between 2005-2024, covering government grants, tax concessions, and below-market finance provided to firms across regions and sectors.
The database and report will contribute to discussions at the OECD Ministerial Council Meeting starting on 3 June 2026, under the theme of "Getting Industrial Policies Right for Open Markets, Growth and Prosperity".
The report finds that total subsidies across 15 key industries reached 1.3% of firm revenue, totalling USD 108 billion in 2024. This was the second highest level relative to revenue on record after a peak in 2009, which resulted from a drop in sales during the global financial crisis that pushed up the subsidy-to-revenue ratio.
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, rising to 60% for Chinese firms. However, while subsidies increased firms' market shares, they did not lead to significant gains in productivity or profitability.
"Large and persistent industrial subsidies can distort global markets, creating unfair competitive advantages and contributing to excess supply capacity," OECD Secretary-General Mathias Cormann said. "To monitor and analyse how subsidies are shaping global markets, reliable data on industrial subsidies is key. The OECD MAGIC database helps countries build a shared understanding of the challenges, paving the way for co-ordinated efforts to make the global trading system fairer and function better without compromising the benefits of open markets and rules-based trade."
Note: The 2009 spike in below-market borrowings is largely explained by the financial rescue of large OECD carmakers during the global financial crisis.
Renewable energy equipment, semiconductors, and heavy industries were among the most subsidised sectors covered by the database. Between 2005-2024, 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. On average, firms with state ownership above 25% received substantially more support than their private competitors, especially through grants and below-market borrowings. This stems partly from the fact that these companies are often found in heavy industries characterised by more debt financing and below-market-borrowings, and in China.
Lack of transparency remains a key challenge for understanding the scale and scope of industrial subsidies. Unlike approaches based on government disclosures, the OECD MAnufacturing Groups and Industrial Corporations (MAGIC) database tracks subsidies actually received by firms. This firm-level approach allows the database to measure support provided globally, including at subnational (city, county, state) level and in economies where public reporting is limited.
