BRASILIA, Aug 27 (Reuters) – Brazil’s current account deficit widened far more than expected in July, central bank data showed on Thursday, reaching its largest shortfall for the month in seven years as external accounts deteriorated across the board.
Latin America’s largest economy posted a current account deficit of $8.11 billion in July, well above the $6.6 billion shortfall forecast by economists in a Reuters poll and the largest for the month since 2019.
The central bank said the services deficit grew by about $500 million from a year earlier, while the factor payments account deficit increased by roughly $400 million.
Brazil’s trade surplus, meanwhile, shrank by around $200 million from July 2025 as imports grew faster than exports.
A widening current account deficit can weigh on a country’s currency as it reflects a net outflow of U.S. dollars.
Foreign direct investment (FDI) totaled $7.46 billion in July, below both the $7.92 billion median forecast in the Reuters poll and the $8.4 billion seen a year earlier.
On a rolling 12-month basis, FDI eased to 3.50% of gross domestic product but continued to comfortably finance the current account deficit, which widened to 2.49% of GDP.
(Reporting by Marcela Ayres; Editing by Gabriel Araujo)
