Bras\u00edlia \u2013 The International Monetary Fund (IMF) warned of the risk of investment flight in emerging countries in case global economic conditions worsen. The conclusion is part of the Global Financial Stability Report, issued in Washington this Tuesday (13th). The IMF warned that investors who took advantage of the 2008 world economic crisis to invest in emerging nations may withdraw their funds, in a trend of reversal, in the case of a new worldwide economic shock.<\/p>\n
\u201cHowever, with as many first-time investors seizing the advantages of these [emerging] countries\u2019 relatively better economic performance, there is a risk of reversal in case the fundamentals change,\u201d the document says. \u201cIn the case of larger shocks, the impact of this reversal may be as large as the outflow seen during the [2008] financial crisis.\u201d<\/p>\n
According to the FMI, the scope of the recent withdrawal of investment in asset funds and bonds at emerging markets after the downgrading of the United States public debt and the worsening of the European Union crisis corroborates the report\u2019s conclusions. After the world crisis, many emerging nations, such as Brazil, which had been less affected by the turmoil than more advanced economies, recovered faster. This scenario attracted a strong flow of foreign investment into these countries.<\/p>\n
Although investors have been attracted by high interest rates in emerging countries, the IMF judges that this factor is considered only by short-term investors. In the case of institutional and long-term investors, the decision of where to invest the funds is based mainly in good growth forecasts and lower risk in target countries. \u201cThe difference in interest rates among the countries plays a secondary role,\u201d the IMF claims.<\/p>\n
*Translated by Gabriel Pomerancblum<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
According to a report issued by the institution, there may be investment flight in developing nations should the world economic crisis worsen.<\/p>\n","protected":false},"author":2315,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[91],"tags":[],"class_list":{"0":"post-39276","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy"},"wps_subtitle":"According to a report issued by the institution, there may be investment flight in developing nations should the world economic crisis worsen.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/39276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2315"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=39276"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/39276\/revisions"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=39276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=39276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=39276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}