Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Businessweek Archives

Foreign Capital Is Doing More Ebbing Than Flowing


Economic Trends

FOREIGN CAPITAL IS DOING MORE EBBING THAN FLOWING

Alan Lerner isn't alone in asserting the economy is undergoing a credit squeeze. Economic consultant Sam Na-kagama points to a sharp slowdown in the nation's net inflow of foreign capital -- from $166.9 billion in 1987 to an actual outflow at a $52.3 billion annual rate in the first half of this year. The main cause, he says, has been a massive reversal in Japan's and Germany's capital flows, from a combined outflow of $80 billion in 1990 to an inflow at a $19.4 billion pace this year. In this situation, says Nakagama, "tax cuts that lead to rising deficits may be of little avail."GENE KORETZ


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus