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

Communications

Industry Products

Media Services

Follow Us

IIF Sees Emerging Market Flows Falling Less on ECB Intervention

June 7 (Bloomberg) -- Private investments in emerging markets will probably fall about 11 percent this year, contracting less than forecast after European Central Bank funding reduced pressure on banks to scale back business, according to the Institute of International Finance Inc.

Flows to emerging markets will fall to about $912 billion this year from $1.03 trillion last year, the IIF said today. The institute in January said flows would contract to as little as $746 billion this year.

ECB three-year loans of more than 1 trillion euros ($1.26 trillion) helped increase flows to emerging markets and moderated the pace of bank deleveraging, the IIF said in a report presented in Copenhagen today. Capital flows should rise to about $994 billion in 2013 while risks remain, it said.

“We anticipate that economic and financial tensions in the euro area will persist for some time and subside only very gradually in 2013,” said IIF deputy managing director and chief economist Philip Suttle. “Despite the large upward revision, capital flows this year are still projected to decline in Asia, by around 15 percent, in particular China,” he said.

Emerging markets in Asia will account for about 44 percent of flows in 2013 from 52 percent in 2011, according to the IIF.

To contact the reporter on this story: Elisa Martinuzzi in Milan at emartinuzzi@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.