Brazil posts $68.8 billion current account deficit in 2025, central bank says

Brazil ran a current account deficit of $68.791 billion in 2025, equal to 3.02% of gross domestic product, the central bank said on Monday. The result was broadly in line with 2024, when the deficit totaled $66.168 billion, or 3.03% of GDP.

Fernando Rocha, head of statistics at the central bank, said the current account position remained “quite robust.” He noted the deficit had been widening through February 2025 alongside stronger domestic demand, then stabilized through November before narrowing in December. The 2025 shortfall was the largest for the year since 2014, when it reached $110.5 billion.

Rocha said the external deficit was financed by long-term capital inflows, mainly foreign direct investment, which he described as high quality in both flows and stock. Foreign direct investment in the country totaled $77.676 billion in 2025.

He also said Brazil’s trade flow expanded in 2025, with record exports and imports, underscoring deeper integration into the global economy. Against that backdrop, he said the trade surplus posted a “slight reduction,” by $5.9 billion.

That was partly offset by a $2.2 billion narrowing in the services deficit and a $1 billion increase in the secondary income surplus. The primary income deficit—payments such as interest, profits and dividends—was broadly unchanged from 2024.

The central bank released the annual figures alongside December 2025 data, which showed a current account deficit of $3.363 billion, down from a $10.237 billion deficit in December 2024.

The December result was the smallest for that month since 2015, reflecting higher surpluses and smaller deficits across items in the balance of payments. The standout was the trade balance, which improved by $4.7 billion.

Trade and services

Goods exports totaled $350.899 billion in 2025, up 3.2% from 2024, while imports rose 6.2% to $290.947 billion. The trade surplus reached $59.952 billion, down 8.9% from $65.842 billion in 2024.

The services account—covering items such as travel, transport, equipment rentals and insurance—posted a deficit of $52.940 billion in 2025, a 4.1% improvement from a $55.182 billion deficit in 2024.

One key year-on-year change was a $5 billion reduction in net spending on personal, cultural and recreational services. The central bank attributed that shift to a regulatory change that, from January 2025, required online betting operators to become resident companies, meaning betting transactions no longer appeared in the external sector balance of payments.

Net receipts from financial services increased by $1.1 billion.

On the other hand, net spending rose by $2.5 billion for intellectual property services and by $941 million for telecommunications, computer and information services—categories tied to digital platform transactions such as streaming services and software sales.

In travel services, the deficit widened in 2025 to $13.850 billion, reflecting $7.865 billion in receipts—spending by foreign visitors in Brazil—and $21.715 billion in expenditures by Brazilians abroad.

Rocha said spending by tourists in Brazil was the highest in the historical series that began in 1995.

Source: Agência Brasil

Sharing is caring!