Emerging markets enjoy record FDI resurgence

Non-domestic investors pumped more than $77bn into emerging markets in the past month alone, according to data compiled by the Institute of International Finance (IIF), at a rate not seen since 2013. $40bn was invested in emerging market equities, the data shows, with the remaining $37bn going to acquire debt. The speed and volume of the investment has helped emerging markets end the year on a high by offsetting a record exodus at the beginning of the pandemic. Several analysts believe that the trend will continue into 2021, although others warn that the economic outlook looks challenging for the foreseeable future and that in the circumstances, many businesses and governments will struggle to invest in productive growth for several months to come.

Source: FT