FX.co ★ Brazil Current Account Deficit Deepens More Than Expected

Brazil’s current account deficit widened to $5.06 billion in August 2026, up from $3.78 billion in the same month a year earlier and exceeding market expectations of a $4.9 billion shortfall. The services deficit expanded by 28.2% to $5.3 billion, driven mainly by higher net spending on transportation (up 28.3%), intellectual property (52.4%), telecommunications, computing and information services (128.2%), and equipment rental (6.6%). The primary income deficit also increased, reaching $7 billion, reflecting higher outflows related to profits and dividends. Offsetting these pressures, the goods trade surplus widened to $6.6 billion as exports grew 12.1% year-on-year, outpacing a 9.4% rise in imports. The secondary income surplus also increased, reaching $528 million.