Capital Flows to Emerging Markets

The Capital Flows to Emerging Markets are normally associated to positive consequences but unfortunately can have perverse effects when they slow down or suddenly stop. A simple model of “Pull & Push” factors can be useful to understand the driver behind the capital flows to EMs both in the past and in the future.

Key points

• Key points:
• Net Private Capital Flows to EMs will remain moderate until the world economic & trade uncertainty dissipates and global risk aversion moderates
• Net Private Capital Flows to Turkey will recover some ground after the sharp adjustment of the current account this year

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