Foreign investment in emerging markets outside China comes to 'abrupt standstill'

Foreign investment in emerging market stocks and bonds outside China has come to an "abrupt standstill" due to fears that many economies will not recover from the pandemic this year, according to a report by the Institute of International Finance. In its latest capital flows tracker, the organisation estimates that emerging market securities attracted around $16.8bn in December 2021, but IIF believes the outlook is worsened by the Omicron variant and expectations of a stronger dollar and higher US interest rates. Jonathan Fortun, economist at the IIF, said: "On the other hand, we see ...