Brazil Current Account Deficit Lower Than Expected

Brazil's current account deficit narrowed slightly to $3.2 billion in May 2026 from $3.2 billion in the same month of the previous year, coming in below market expectations of a $4.2 billion deficit. The trade surplus widened by $0.5 billion to $7.8 billion from $7.1 billion last year, as exports rose 6.6%, outpacing a 5.3% increase in imports. The secondary income surplus increased slightly to $0.57 billion from $0.44 billion a year ago. Meanwhile, the services deficit widened to $5.2 billion from $4.6 billion, driven by higher spending on international travel, telecommunications and IT services, and intellectual property. The primary income deficit was little changed from the previous year at $5.5 billion, with a 6.8% decline in net profit and dividend outflows, while net interest payments fell 18.1%.

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.