Brazil’s external accounts had a negative balance of US$5.121 billion in October, the Central Bank (BC) reported this Tuesday (24). In the same month of 2024, the deficit was US$7.387 billion in current transactions, which are purchases and sales of goods and services and income transfers with other countries.
The improvement in the interannual comparison is the result of the US$ 3 billion increase in the trade surplus. On the other hand, there was an increase of US$838 million in the deficit in primary income, which accounts for the payment of interest and profits, in addition to company dividends. The results in secondary income and services remained stable.
In the 12 months ended in October, the current account deficit totaled US$76.727 billion, which corresponds to 3.48% of the Gross Domestic Product (GDP – sum of goods and services produced in the country). In relation to the equivalent period ending in October 2024, there was an increase in the deficit; that month, the 12-month result was negative at US$57.341 billion, or 2.57% of GDP.
According to the BC, current transactions have a very robust scenario and had a tendency to reduce deficits in 12 months, which was reversed from March 2024.. Even so, the external deficit is financed by long-term capital, mainly direct investments in the country, which have good quality flows and stocks.
Trade balance and services
Exports of goods totaled US$32.111 billion in October, an increase of 8.9% compared to the same month in 2024. Meanwhile, imports reached US$25.941 billion, a reduction of 1.3% compared to October last year.
With the results of exports and imports, the trade balance closed with a surplus of US$6.170 billion last month, compared to a positive balance of US$3.189 billion in October 2024.
The deficit in the services account – international travel, transportation, equipment rental and insurance, among others – reached US$4.372 billion last month, compared to US$4.416 billion in the same period of 2024.
There was a 142% increase in net expenditure on telecommunications, computing and information services, totaling US$591 million, and a 35.6% increase on intellectual property services, linked to streaming platforms, to US$995 million. Net transport expenses decreased 18.5%, totaling US$ 1.3 billion, reflecting the drop in imports.
In the case of international travel, the deficit in the account closed at US$ 1.343 billion, 14.5% above that recorded in October 2024. This is the result of a 3.8% reduction (total of US$573 million) in revenues – which are the expenses of foreigners traveling to Brazil – and an 8.3% increase in Brazilians’ expenses abroad, to US$1.916 billion.
Lace
In October 2025, the deficit in primary income – profits and dividends, interest payments and salaries – reached US$7.429 billion, 12.7% above the figure recorded in October last year, of US$6.590 billion. Normally, this account is in deficit, since there are more investments from foreigners in Brazil – and they remit profits outside the country – than from Brazilians abroad.
The secondary income account – generated in one economy and distributed to another, as donations and dollar remittances, without counterpart services or goods – had a positive result of US$510 million last month, compared to a surplus of US$430 million in October 2024.
Financing
Direct investments in the country (IDP) totaled US$ 10.937 billion in October this year, compared to US$ 6.698 billion in the same month of 2024. When the country records a negative balance in current transactions, it needs to cover the deficit with investments or loans abroad. The best form of financing the negative balance is the IDP, because the resources are invested in the productive sector and are usually long-term investments.
The IDP accumulated in 12 months totaled US$ 80.081 billion (3.63% of GDP) in October, compared to US$ 75.843 billion (3.46% of GDP) in the previous month and US$ 72.943 billion (3.27% of GDP) in the period ending in October 2024.
In the case of portfolio investments in the domestic market, there was a net inflow of US$3.213 billion in October, made up of net inflows of US$2.452 billion in debt securities and US$761 million in shares and investment funds. In the 12 months ended in October, portfolio investments in the domestic market totaled net inflows of US$6.3 billion.
The stock of international reserves reached US$357.103 billion in October, an increase of US$521 million compared to the previous month.
