About this work
The December 2024 forecast anticipates weaker capital flows to emerging markets in 2025, with China accounting for much of the decline. Slower Federal Reserve easing and a stronger dollar would also raise financing pressures elsewhere. Regional differences and China's deteriorating direct investment balance shape a baseline exposed to substantial downside risks.
Abstract
The December 2024 forecast anticipates weaker capital flows to emerging markets in 2025, with China accounting for much of the decline. Slower Federal Reserve easing and a stronger dollar would also raise financing pressures elsewhere. Regional differences and China's deteriorating direct investment balance shape a baseline exposed to substantial downside risks.
Cite this work
Marcello Estevão, Jonathan Fortun (2024). Capital Flows Report: Riding the Waves of Global Change. Institute of International Finance.