Brazil Current Account to GDP Ratio

Brazil's current account to GDP ratio weakened to -2.55% in 2024, the lowest since 2021, compared to -1.12% in 2023. This deterioration resulted primarily from a surge in goods imports which reduced the trade surplus. The trade surplus declined by $19.8 billion year-on-year from January to October with this decrease accounting for approximately 80% of the current account deficit's increase. Goods imports rose by nearly 15% in 2024 particularly in vehicles, machinery and electrical goods, driven by increased domestic demand from an overheating economy and loose fiscal policy. The services account deficit also worsened, reaching $40.9 billion by October, exceeding the previous year's total due to higher freight costs, growth in telecommunications, computing and information services and increased travel demand. A wider primary income deficit, caused by higher net income expenses on direct and portfolio investments, further contributed to the current account weakening. Brazil's record low current account to GDP was -8.2% in 1982 and its record high was 1.7% in 2004.