About this work
The May 2024 forecast anticipates renewed nonresident investment in emerging markets as their growth and interest rate outlook improves relative to advanced economies. Direct investment remains the main source of external funding, with portfolio investment also recovering unevenly across regions. Weaker growth, geopolitical tensions and delayed Federal Reserve easing remain key risks to the baseline.
Abstract
The May 2024 forecast anticipates renewed nonresident investment in emerging markets as their growth and interest rate outlook improves relative to advanced economies. Direct investment remains the main source of external funding, with portfolio investment also recovering unevenly across regions. Weaker growth, geopolitical tensions and delayed Federal Reserve easing remain key risks to the baseline.
Cite this work
Garbis Iradian, Ugras Ulku, Martín Castellano, Gene Ma, María Paola Figueroa, Jonathan Fortun, Ivan Burgara, Augustin Bonah, Candice Reddy, Valentina Bonifacio (2024). IIF Capital Flows: Sunshine Coming Out, But Bring an Umbrella. Institute of International Finance.