Money pours into emerging markets

Investment is flowing into emerging markets at an almost unprecedented rate. Data tracking money flows into 21 emerging economies showed that $1.1 billion a day net moved this week. It’s second only to late 2020 when COVID-19 lockdowns were lifted. 

The Financial Times credited the change to falling inflation, which investors bet will lead to reduced interest rates in Western countries, and thus lower debt-servicing costs for developing ones. China ending its zero-COVID regime is also key: $800 million of the $1.1 billion goes into China. Developing countries are expected to grow faster than rich ones this year.

(WBJ)