Private capital flows to Emerging and developing economies - 2007 data|
Looking at the "Private capital flows, net" series, with regard to the aggregate "Emerging and developing economies", I have noticed that the 2007 data are extremely high (in $ billions, from 231.9 in 1006 to 604.9 b in 2007 and falling back to $330.7 in 2008 forecast). The sources to this "jump" are located in series of "Private portfolio flows, net" (from -103.8 to 48.5 and back to -72.2) and "Other private capital flows, net" (from 87.5 to 248.8 and back to 97.9).
I have been working with cycles of capital flows to emerging and developing economies for some time, and this numbers are very surprising to me. Other sources (like Institute of International Finance's estimates of Private Capital Flows to Emerging Market Economies) don't show such a huge increase in capital flows in 2007. Do you have some details, or some explanations, to this fact?
Thanks in advance. Yours faithfully,
|5/20/2008 10:36:39 AM
RE: Private capital flows to Emerging and developing economies - 2007 data|
The extremely high values in 2007 data are due to large Private portfolio flows, net for countries such as Brazil,China, India, and also Other private capital flows, net for India and Russia.
The jump in capital inflows into India was a part of a pickup to the flows into emerging market. For Russia, it is strengthening of the Russian ruble and large oil revenues, and their re-investment into Russian economy. For Brazil, it is the overall, the larger capital inflows to Brazil in 2007 responded to a positive sentiment regarding economic performance. The growing economy boosted by persistently high commodity prices and the anticipation of being upgraded to investment grade attracted large inflows.
|5/23/2008 11:53:49 AM