Brazil gross debt hits 82.9% of GDP, fastest rise since pandemic

Brazil's gross debt reached R$ 11.1 trillion (82.9% of GDP) in August, the highest since March 2021, with a 4.2 pp increase in the debt/GDP ratio in the first eight months—the steepest for that period since 2020. The nominal deficit over 12 months hit R$ 1.264 trillion (9.48% of GDP), driven by a primary deficit and interest costs. This signals deteriorating fiscal trajectory, raising concerns about debt sustainability and potential pressure on Brazilian assets.