FX.co ★ Brazil Current Account Deficit Narrows Sharply in December

In December 2025, Brazil witnessed a notable decrease in its current account deficit, which fell to $3.4 billion from the previous year's $10.2 billion, outperforming the market's forecast of a $5.3 billion deficit. This positive trend was largely due to an enhanced goods trade balance, which surged to an $8.8 billion surplus from $4.1 billion in December 2024. Exports of goods grew by 24.3% year-over-year, reaching $31.2 billion, while imports saw a more modest increase of 6.7%, totaling $22.4 billion. The deficit in the services account saw a reduction of 23.2%, standing at $3.8 billion compared to the prior year's $5.0 billion. Additionally, the primary income deficit decreased by 8.4% to $9.2 billion. The secondary income account reported a higher surplus, up by $176 million year-over-year. Over the entire year of 2025, Brazil's current account deficit amounted to $68.8 billion, representing 3.02% of the GDP. This is a slight nominal increase compared to the $66.2 billion deficit (3.03% of GDP) reported for 2024.