BRASILIA, Jan 27 (Bernama-Xinhua) -- Brazil's current account deficit amounted to US$68.8 billion in 2025, the worst level in 11 years, Xinhua reported based on data published on Monday by the Central Bank.
The 2025 deficit was equivalent to 3.02 per cent of gross domestic product (GDP) – higher than the 2024 shortfall of US$66.2 billion, according to the bank.
In December 2025, the current account transactions posted a deficit of US$3.4 billion, sharply down from US$10.2 billion a year earlier. The wider deficit was mainly due to a decline of US$5.9 billion dollars in the trade surplus, partly offset by a narrower services deficit of US$2.2 billion and a higher secondary income surplus of US$1 billion, 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 US$77.7 billion, equivalent to 3.41 per cent of GDP, up from US$74.1 billion or 3.39 per cent of GDP in 2024, more than sufficient to cover the current account deficit. Meanwhile, Brazil's international reserves stood at US$358.2 billion in December 2025, an increase of US$28.5 billion from a year earlier.
--BERNAMA-XINHUA
