Emerging-market capital flows forecast to turn negative in 2015

Tokyo

NET capital flows to emerging markets in 2015 will be negative for the first time in many years with net outflows projected at US$541 billion, the Institute of International Finance (IIF) said on Thursday in its latest report on capital flows to emerging markets.

"Emerging market (portfolio) assets have seen sharp losses in recent months," said Charles Collyns, managing director and chief economist at the Washington-based IIF.

"We project that non-resident inflows in 2015 will fall to their lowest levels since the 2008 financial crisis," the IIF said in a statement. "But unlike the 2008 crisis, the reasons are largely internal rather than external - related to rising concerns about economic prospects and policies in China, coupled w…