Brazil's Current Account Deficit Narrows in January

Brazil's current account deficit narrowed to $5.6 billion in February 2026, down from $10.2 billion a year earlier, though slightly above forecasts of $5.4 billion. The goods trade balance swung to a $3.5 billion surplus from a $1.1 billion deficit, with exports rising 14.8% to $26.4 billion and imports falling 5.1% to $22.9 billion. The services deficit remained steady at $3.9 billion, as international travel spending surged 49.0% and intellectual property services jumped 46.8%, partially offset by lower transport costs (-18.0%) and telecom expenses (-4.6%). The primary income deficit edged up 2.1% to $5.6 billion, as profit and dividend outflows rose 13.6% while interest payments fell 19.8%. Over the 12-month period, the deficit fell to $63.4 billion (2.71% of GDP), down from $79.0 billion (3.67% of GDP) a year earlier.

Brazil's current account deficit narrowed to $8.4 billion in January 2026, down from $9.8 billion in January 2025, though it fell short of the forecasted $6.6 billion deficit. The goods trade surplus expanded to $3.5 billion, up from $1.4 billion a year earlier. The services account deficit declined 12.8% to $4.0 billion, while the primary income deficit widened 18.7% to $8.3 billion, compared to $7.0 billion in January 2025. On a rolling twelve-month basis, the current account deficit narrowed to $67.6 billion (2.92% of GDP) as of January 2026, improving from $69.0 billion (3.03% of GDP) the previous month. For full-year 2025, Brazil’s current account deficit reached $68.8 billion, equivalent to 3.02% of GDP, slightly wider in nominal terms than the $66.2 billion deficit (3.03% of GDP) recorded in 2024.

Brazil’s current account deficit narrowed sharply to $3.4 billion in December 2025, from a $10.2 billion shortfall a year earlier and well below market expectations of a $5.3 billion deficit. The improvement was driven by a stronger goods trade balance, which posted an $8.8 billion surplus, up from $4.1 billion in December 2024. Goods exports rose 24.3% year-on-year to $31.2 billion, while imports increased 6.7% to $22.4 billion. The services account deficit declined 23.2% to $3.8 billion, compared with $5.0 billion a year earlier. The primary income deficit narrowed 8.4% to $9.2 billion, while the secondary income account recorded a larger surplus, rising by $176 million year-on-year. For full-year 2025, Brazil’s current account deficit reached $68.8 billion, equivalent to 3.02% of GDP, slightly wider in nominal terms than the $66.2 billion deficit (3.03% of GDP) recorded in 2024.