FX.co ★ Brazil Current Account Gap Narrows in August

In August 2025, Brazil experienced a reduction in its current account deficit, which fell to $4.7 billion from the $7.2 billion recorded in the same month the previous year. This figure was also lower than market projections, which anticipated a $5.5 billion shortfall. The improvement in the goods surplus, which increased to $5.5 billion as compared to $3.7 billion, was a key contributor. This was supported by a 3.8% rise in exports, reaching $30.0 billion, while imports decreased by 2.6% to $24.5 billion. Meanwhile, the services deficit saw a significant reduction of 20.3%, settling at $4.2 billion. In contrast, the primary income deficit grew by 6.4% to $6.3 billion. The secondary income balance remained unchanged at $3.97 billion. Over the 12-month period ending in August, the cumulative current account deficit stood at $76.2 billion, which represents 3.51% of GDP. This marks a decrease from the $78.7 billion (3.66% of GDP) recorded in July, although it is notably higher than the $43.6 billion (1.95% of GDP) observed the previous year.