São Paulo – A gradual recovery in capital flows to emerging countries is expected in 2014 and 2015, according to a study published this Thursday (30) by the Institute of International Finance (IIF). The rebound depends mainly on the strengthening of the world economy, according to the IIF, global association of financial institutions.
The study reports that flows cutbacks observed in 2013 were temporary, as the markets faced the expectations of Federal Reserve tapering in the USA. Although a rebound is expected, the IIF alerts that flows will be lower than in the 2010-2012 period, as investors’ risk sensitivity has increased.
The greatest recovery is expected to take place next year. According to an estimate by the IIF, emerging economies, which received US$ 1.119 trillion in 2013, will receive US$ 1.079 trillion in 2014 and US$ 1.138 trillion in 2015. These forecasts were revised in relation to a report published in October, up by US$ 57 billion in 2013 and US$ 50 billion in 2014.
*Translated by Silvia Lindsey