Brazil Current Account Deficit Lower Than Expected

Brazil’s current account deficit widened to $8.11 billion in July 2026, from $6.9 billion a year earlier, exceeding market expectations for a narrowing to $6.6 billion. The goods trade surplus fell to $6.2 billion, as imports grew 8.1%, outpacing the 5.7% increase in exports. Meanwhile, the services deficit widened to $5.3 billion, driven by higher expenses on transportation (26.3%), telecommunications, computing and information services (27.6%), and intellectual property (27.4%). The primary income deficit also widened to $9.4 billion, mainly due to higher net expenses on profits and dividends, while the secondary income surplus narrowed to $404 million.

Brazil's current account deficit narrowed to $2.33 billion in June 2026 from $5.18 billion in the same month a year earlier, beating market expectations of a $2.45 billion shortfall. The improvement was largely driven by a stronger trade balance, with the surplus widening by $3.6 billion to $8.8 billion as goods exports surged 24.8% year-on-year to a record $36.4 billion, while imports rose 15.3% to $27.6 billion. Primary and secondary income balances were broadly unchanged from a year earlier, with the primary income deficit holding at $6.5 billion and the secondary income surplus edging up to $438 million. Meanwhile, the services deficit widened by $0.7 billion to $5.1 billion, reflecting higher net spending on international travel (21%), transportation (22.4%), and telecommunications, computing, and information services (16.9%).

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%.