EMs to report negative flows for first time since the 1980s

Capital flight from the asset class

The Institute of International Finance (IIF) has said emerging markets could suffer a net outflow of capital this year - the first time since the 1980s - as foreign investor inflows fall to just $548bn.

When combined with accelerating outflows from resident investors, capital outflows could amount to $540bn this year, reported the Financial Times, the first time this has been seen since 1988. This follows inflows of $32bn in 2014. The IIF also estimated that indebtedness at non-financial corporations in EMs has increased more than fivefold over the past decade, reaching a staggering $23.7trn, a concern for many investors around the globe. UK investors return to home shores as equity inflows soar Charles Collyns, the IIF's chief economist, said: "Flows to EMs have weakened sharply i...