Brazil's current account deficit hits 11-year high in 2025

BRASILIA, Jan. 26 (Xinhua) -- Brazil's current account deficit amounted to 68.8 billion U.S. dollars in 2025, the worst level in 11 years, according to data published Monday by the Central Bank.

The 2025 deficit was equivalent to 3.02 percent of gross domestic product (GDP), higher than the 2024 shortfall of 66.2 billion dollars, according to the bank.

In December 2025, the current account transactions posted a deficit of 3.4 billion dollars, sharply down from 10.2 billion dollars a year earlier.

The wider deficit was mainly due to a decline of 5.9 billion dollars in the trade surplus, partly offset by a narrower services deficit of 2.2 billion dollars and a higher secondary income surplus of 1 billion dollars, while the primary income deficit remained unchanged from 2024.

A current account deficit, which occurs when outflows of currency exceed inflows, is usually financed through capital inflows such as external borrowing and foreign investment, with foreign direct investment (FDI) widely considered a more stable source of financing as it supports the productive sector.

In 2025, FDI flows totaled 77.7 billion dollars, equivalent to 3.41 percent of GDP, up from 74.1 billion dollars or 3.39 percent of GDP in 2024, more than sufficient to cover the current account deficit.

Meanwhile, Brazil's international reserves stood at 358.2 billion dollars in December 2025, an increase of 28.5 billion dollars from a year earlier. ■