BRASILIA, June 25 (Xinhua) -- Brazil's current account deficit grew to 69.4 billion U.S. dollars in the 12 months ended May, or 3.26 percent of its GDP, according to data released Wednesday by Brazil's Central Bank.

The figure shows a significant deterioration compared to a year earlier, when the deficit stood at 29.4 billion dollars, or 1.30 percent of its GDP.

The current account comprises the trade balance, flow of goods and services, and unilateral transfers such as remittances from Brazilians living abroad.

When these transactions result in a deficit, the country needs external financing, either through investments or loans. The most sustainable source of financing is domestic direct investment (DDI).

Brazil's DDI recorded net inflows of 3.7 billion dollars in May 2025, up from 3 billion dollars the previous year.

The country's international reserves stood at 341.5 billion dollars at the end of May, up by 670 million dollars from April. ■