External debt has risen steadily, but the broader resilience picture remains supported by a large reserve buffer
Recent dynamics
Brazil's gross external debt rose throughout 2025 and continued increasing in the first half of 2026. The stock stood at approximately US$362.1 billion in the first quarter of 2025 and increased to US$363.2 billion in the second quarter.
The pace of increase strengthened during the second half of 2025. Gross external debt reached roughly US$379.0 billion in the third quarter and US$386.1 billion in the fourth quarter before climbing above US$400 billion at the start of 2026.
In the second quarter of 2026, the stock reached approximately US$407.1 billion. That represents an increase of about 12.1% from the second quarter of 2025 and approximately 1.5% from the first quarter of 2026.
Reserve buffer and external resilience
Brazil continues to hold a large stock of international reserves. At the end of June 2026, reserves totaled approximately US$367.6 billion, equivalent to about 90% of the latest gross external-debt stock.
That comparison provides useful scale but should not be treated as a short-term liquidity ratio. The BCB separately monitors reserves relative to external debt maturing within one year, which is more appropriate for assessing immediate foreign-currency refinancing risk.
The large reserve buffer nevertheless strengthens Brazil's capacity to absorb external funding stress and reduces the importance of gross debt levels when viewed in isolation. External vulnerability depends more on the combination of debt, reserves, maturity, currency exposure, and financing conditions than on the headline stock alone.
Conclusion
Brazil's gross external debt has increased materially over the past year and reached about US$407 billion in the second quarter of 2026. The trend points to a larger stock of external liabilities, with growth remaining positive both year over year and quarter over quarter.
The increase should, however, be interpreted within Brazil's broader external position. A large reserve buffer and a growing dollar-denominated GDP help contain the immediate vulnerability implied by the higher stock, while the broader BCB external-debt concept remains the more complete measure for assessing total external indebtedness.