EM capital flows to hit decade high of $200B in 2024

By Tuba Ongun

Emerging market (EM) net capital flows will hit a decade high this year, Fitch Ratings said in its latest Economics Dashboard on Monday.

Fueled by stronger gross domestic product growth in EM relative to developed markets and the prospect of rate cuts by the US Federal Reserve, the figure will reach 2.2% of GDP in 2024, it said.

Fitch analyzed trends in net private capital flows to the largest emerging markets excepting China: Türkiye, Mexico, South Korea, South Africa, Brazil, Poland, India, Indonesia, and Russia.

In late 2007, net capital flows peaked at $408 billion, equivalent to around 5% of the nine emerging markets' GDP.