Key insights
- Brazil's wider-than-expected current account deficit in March, driven by a shrinking trade surplus and increased deficits in factor payments and services, may signal weakening economic conditions in a major emerging market. While the direct impact on US equities is limited, it contributes to broader concerns about global economic growth and emerging market stability, potentially dampening risk appetite.
BRASILIA, April 24 (Reuters) - Brazil’s current account deficit totaled $6.036 billion in March, central bank data showed on Friday, exceeding the $5.489 billion shortfall expected by economists in a Reuters poll.
Foreign direct investment (FDI) for the month reached $6.037 billion, falling short of the $7 billion forecast in the poll.
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The widening of the current account deficit was driven by a $1.6 billion fall in the trade surplus from the same month last year, as imports grew much faster than exports.
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Also weighing on the monthly result were larger deficits in the factor payments account, up $1.1 billion from March 2025, and in services, which increased by $600 million.
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On a 12-month basis, the current account deficit rose to 2.71% of gross domestic product (GDP), from 2.61% in the previous month.
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Over the same period, FDI totaled 3.18% of GDP, down from 3.24% in February.