EMs may find it tough to attract foreign funds: IIF

EMERGING economies in Asia and elsewhere may have seen their best days in terms of attracting foreign investment and though recent outflows should not trigger renewed crises in these regions, attracting fresh foreign funds could become more difficult in the future, according to an authoritative report released yesterday.

Capital inflows have fallen sharply in recent months against the backdrop of more difficult external conditions, and are projected to decline by US$153 billion to US$1,062 billion this year, the Washington-based Institute of International Finance (IIF) said in its latest report on emerging market capital flows.

"The fundamental underpinnings of emerging market growth have deteriorated, making them somewhat less attractive to foreign investors," the report said.