The broadest measure of the gap between what Brazil sells to the rest of the world and what it imports, including capital flows, reached $33.85 billion in the 12 months to August, the equivalent to 1.84% of gross domestic product.
That is the widest deficit since the 2.11% registered in March 2016, when Brazil was in the midst of one of the deepest recessions in its history. In July this year, the equivalent deficit was 1.70%, and in January it was 1.24%.
The central bank said there was a revision to the methodology of how certain cross-border flows are calculated, which adjusted previous months' data. For example, the 12-month deficit through July was revised up to $31.3 billion, or 1.7% of GDP, from $24.4 billion and 0.95% of GDP as previously reported.
In the month of August itself, Brazil's current account deficit was $4.27 billion, slightly wider than the $3.96 billion shortfall forecast in a Reuters poll of economists and more than double the $1.75 billion deficit in the same month last year.
The main driver of the shortfall last month was a $3.43 billion net outflow of profits and dividends, compared with just $464 million a year earlier, the central bank said.
The deficit, however, was once again more than adequately funded by foreign direct investment (FDI) inflows, which totaled $9.47 billion in August, more than the Reuters poll estimate of $6.0 billion.
In the 12 months to August, FDI has totaled $72 billion, some 3.91% of GDP, easily covering the $33.85 billion current account gap, central bank figures show. FDI in September is expected to total a further $4 billion, central bank director Fernando Rocha said on Monday. The revised methodology also affected previous months' FDI figures, the central bank said. The 12-month rolling total through July was revised down to $72.2 billion, or 3.9% of GDP, from $94.9 billion and 5.00% of GDP.