Brazil Current Account Gap Larger than Expected

Brazil's current account shortfall rose to $1.8 billion in April 2026 from $1.6 billion in the same month of the previous year, larger than the expected 0.2 billion deficit. The services gap widened to $5.0 billion from $4.1 billion in April 2025, mainly driven by higher spending on travel abroad, telecom and IT services, and equipment rentals. At the same time, the primary income shortfall rose to $6.8 billion from $5 billion, as net expenses for profits and dividends rose to $4.6 billion from $3.4 billion a year earlier, while net interest expenses increased to $2.3 billion from $1.7 billion. On the other hand, the trade surplus increased to $9.7 billion from $7 billion a year ago, as exports jumped 13.9% while imports rose at a slower 6.2%. The secondary income surplus decreased slightly to $0.4 billion from $0.5 billion.

Brazil's current account deficit widened to $6.0 billion in March 2026 from $2.9 billion in March 2025, missing forecasts of a $5.6 billion gap. The goods trade surplus contracted to $5.6 billion from $7.2 billion. Goods exports rose 9.5% year-on-year to $31.7 billion, while goods imports climbed 19.9% to $26.1 billion. The services account deficit expanded to $4.8 billion from $4.2 billion, driven by increases in telecommunications, computing and information expenses (up 27.4%), intellectual property services (up 9.2%), and transport expenses (up 7.5%). The primary income deficit reached $7.4 billion, up 17.8%, as net interest expenses surged 33.5% to $2.6 billion on higher intercompany operations, while net profit and dividend expenses totaled $4.8 billion, up 10.7%. The 12-month current account deficit through March 2026 widened to $64.3 billion (2.71% of GDP) from $61.2 billion (2.61% of GDP) in February.

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.