World Economy

EMs Foreign Capital Inflows Drop

EMs Foreign Capital  Inflows DropEMs Foreign Capital  Inflows Drop

Emerging markets portfolio investment from foreign investors slowed to a net $1.2 billion in May after touching $17.3 billion in April and $26.4 billion in March, an industry body said, Reuters reported. While non-resident investors added $2.6 billion into fixed-income emerging market investments, they pulled $1.4 billion out of emerging market stocks, according to a statement from the Institute of International Finance, a global banking group that tracks investment flows. The foreign investor data showed a net outflow in May of investment in emerging markets in Europe and the Mideast-African region. Portfolio investment inflows to emerging Asian economies were $7.7 billion last month while Latin American markets attracted net inflows of $1.1 billion. Data showing reduced inflows into emerging market assets and mounting investor concern over these nations’ growth prospects contributed to waning demand for these investments, the IIF said.