Brazil’s current account deficit widened to $8.11 billion in July, the largest shortfall for the month in seven years, the central bank reported on Thursday.
The gap exceeded the $6.6 billion deficit forecast by analysts in a Reuters poll and compared with a $6.938 billion deficit in July 2025. Over the 12 months through July, the deficit totaled 2.49% of gross domestic product.
Foreign direct investment into the country reached $7.46 billion in July, below the $7.92 billion projected in the survey and down from $8.402 billion a year earlier. The primary income account showed a negative balance of $9.395 billion, compared with a deficit of $8.957 billion in the same month of 2025.
The trade surplus narrowed to $6.152 billion from $6.390 billion in July 2025, while the services account deficit widened to $5.271 billion from $4.810 billion a year earlier. The central bank noted that a rising current account deficit can pressure the local currency by reflecting a net outflow of dollars.
The broader deterioration in external accounts underscores challenges in Brazil’s balance of payments amid shifting global trade dynamics and domestic economic conditions.
