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

Brazil’s current account deficit narrowed to $2.33 billion in June 2026, down from $5.18 billion in the same month a year earlier, outperforming market expectations of a $2.45 billion shortfall. The improvement was driven mainly by a stronger trade balance: the trade surplus widened by $3.6 billion to $8.8 billion as goods exports jumped 24.8% year-on-year to a record $36.4 billion, while imports increased 15.3% to $27.6 billion.

Primary and secondary income balances were broadly stable compared with a year earlier. The primary income deficit remained at $6.5 billion, and the secondary income surplus edged up to $438 million.

By contrast, the services deficit widened by $0.7 billion to $5.1 billion, reflecting higher net spending on international travel (up 21%), transportation (22.4%), and telecommunications, computing, and information services (16.9%).