Intra-emerging market porfolio flows surge

Emerging markets are making up shortfalls that have resulted from a fall in investment from developed countries

Data from the International Monetary Fund shows emerging markets are increasingly investing in other emerging markets, making up for slowing investment flows from developed economies to emerging markets. The IMF’s Portfolio Investment data indicates emerging markets cross-border portfolio assets grew by a factor of three between 2001 and 2008 compared with a doubling of flows from advanced economies. In the same period, flows from emerging markets to other emerging markets, known as South-South flows, have picked up by a factor of six, against an increase of just 2.5 times between eme...