Panel SA: Banks point to decline in foreign investment in emerging markets

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Data collected by the Institute of International Finance, an association that represents the world’s largest banks, point to a sharp decline in foreign capital flows to investments in stocks and bonds of companies in emerging markets outside China this year.

According to the IIF, the resumption of economic activity and the start of vaccination against Covid-19 stimulated intense flows between the end of 2020 and the beginning of this year, but the fragility of the recovery has driven investors away from many countries.

Bank data indicate a halt in flows directed to some markets — in particular, Argentina, Brazil and Turkey.

with Ricardo Balthazar (interim), Andressa Motter e Ana Paula Branco ​

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