Report published September 28, 2026
Brazil: Wider Current Account Deficit in Aug Driven by Services and Factor Payments – Goldman Sachs
Goldman Sachs · September 28, 2026
Brazil recorded a wider current account deficit of US$5.1bn in August 2026 due to wider deficits in services and factor payments, despite an improved trade surplus. External accounts remain supported by solid FDI inflows of US$7.4bn, which outpace the 12-month trailing current account deficit of 2.5% of GDP.
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Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.Brazil's August current account deficit widened to US$5.1bn, driven by higher services and factor payments deficits despite an improving trade balance.
- 2.FDI inflows reached US$7.4bn in August, comfortably financing the current account deficit, with 12-month trailing FDI at 3.4% of GDP versus a current account deficit of 2.5% of GDP.
- 3.Portfolio investments saw a net outflow of US$5.3bn in August, driven by US$6.5bn in equity outflows offset by US$1.2bn in local fixed income inflows.
Table of Contents
- Balance of Payments
- Robust Trade Balance (Goods) Surplus; Solid FDI Inflows
- Non-Oil Trade Balance; Solid FDI Inflows Partially Explained by Reinvested Earnings
Report data
Balance of Payments
| Metric | Estimate | Context |
|---|---|---|
| Current Account Balance | -5.1 US$ bn | Current account deficit in August, versus consensus of -US$4.85bn and -US$3.8bn a year ago |
| Foreign Direct Investment (FDI) Inflows | 7.4 US$ bn | Gross FDI inflows into Brazil, vs consensus of US$6.93bn and US$7.7bn a year ago |
| Trade Balance Surplus | 6.6 US$ bn | Trade surplus during August 2026, up from US$6.3bn a year ago |
| Services Balance Deficit | -5.3 US$ bn | Services deficit widened vs -US$4.1bn a year ago |
| Factor Payments Deficit | -7.0 US$ bn | Factor payments deficit widened from -US$5.4bn a year ago due to higher profit and dividend remittances |
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