Brazil’s Public Debt Climbs to 79.2% of GDP, Highest Since 2021

Overview

• Brazil’s gross debt reached 79.2% of GDP in February 2026, the highest level since late 2021, according to central bank data.
• The ratio rose 0.5 percentage point from January, led by a 0.7 p.p. interest effect, with net issuance adding 0.1 p.p. and currency and GDP effects trimming 0.4 p.p.
• Interest costs totaled R$84.2 billion in February and R$1.036 trillion over 12 months, showing how debt servicing is pushing the ratio higher.
• Net debt increased to 65.5% of GDP, which the central bank said is the highest reading in records that start in 2001.
• Economists, including Goldman Sachs, say a sustained decline would require primary budget surpluses above 2% of GDP, a goal they view as unlikely in the near term.