FX.co ★ Brazil Current Account Deficit Widens in July

In July 2025, Brazil's current account deficit expanded to $7.1 billion, compared to $5.2 billion in the same month the previous year, surpassing market forecasts of $5.6 billion. This widening deficit was driven by an increase in the primary income gap, which grew to $8.9 billion from $7.5 billion. Additionally, the goods trade surplus shrank to $6.5 billion from $7.0 billion as imports rose by 8.3% to $26.1 billion, while exports saw a more modest increase of 4.8%, reaching $32.6 billion. The services deficit remained steady at $5.0 billion, with greater outflows in sectors such as travel, telecommunications, intellectual property, and equipment rentals, which were partially balanced by reduced transport costs. Over the 12 months ending in July, the current account deficit amounted to $75.3 billion, representing 3.5% of the nation's GDP.