{"id":87807,"date":"2024-07-14T00:00:00","date_gmt":"2024-07-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/07\/14\/emerging-markets-recover-from-post-pandemic-lows-despite-high-us-interest-rates\/"},"modified":"2024-07-14T00:00:00","modified_gmt":"2024-07-14T00:00:00","slug":"emerging-markets-recover-from-post-pandemic-lows-despite-high-us-interest-rates","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/07\/14\/emerging-markets-recover-from-post-pandemic-lows-despite-high-us-interest-rates\/","title":{"rendered":"Emerging markets recover from post-pandemic lows despite high US interest rates"},"content":{"rendered":"

EMs show resilience in face of rising interest rates, stronger USD: <\/strong>Net capital inflows into emerging markets excluding China rose to USD 110 bn, or 0.6% of GDP in 2023, their highest level since 2018, the International Monetary Fund said in a blog post<\/a>. The recovery from post-pandemic lows comes despite monetary tightening by the US Federal Reserve and a stronger greenback.<\/p>\n

The breakdown: <\/strong>EM saw a decline in more volatile net portfolio inflows, but net inflows of foreign direct investment (FDI) remained resilient, the IMF said. The Washington-based lender partly attributed EM resilience to \u201cstronger fundamentals. \u2026 Indeed, many countries are now benefiting from more robust fiscal, monetary, and financial policy frameworks, as well as more effective implementation of policies and tools,\u201d it said.<\/p>\n

Negatives for China: <\/strong>China saw net capital outflows, including net FDI outflows over 2022-2023, the IMF said. \u201cSome of this may reflect multinational firms repatriating earnings. But it may also reflect shifting expectations about Chinese growth and geoeconomic fragmentation,\u201d the IMF said.<\/p>\n

Zooming out: <\/strong><\/p>\n