Brazil current account gap widens as income, services deficits deepen
EWZ•Brazil’s current account deficit reached $5.1 billion in August, above the $4.9 billion forecast, while foreign direct investment totaled $7.4 billion. The 12-month deficit rose to 2.47% of GDP.
1. August figures
Brazil’s current account deficit reached $5.1 billion in August, compared with a $4.9 billion forecast. Foreign direct investment totaled $7.4 billion, above the $6.9 billion projection.
2. Drivers and outlook
The deficit widened from $3.8 billion in August 2025, as the factor payments deficit increased by $1.5 billion and the services deficit widened by $1.2 billion, more than offsetting a $1.3 billion improvement in the trade surplus. The 12-month deficit rose to 2.47% of GDP and remained financed by FDI, which eased to 3.39% of GDP in August. Last week, Brazil’s central bank raised its 2026 current account deficit forecast to $60 billion and kept its FDI projection at $75 billion.
