48635177 Developing countries have lost 4 billion dollars in investments for the week
Investors in the week from 26 January to 2 February, sharply reduced their investments in stocks of emerging markets, reports Reuters. Net capital outflows from the funds totaled 4.1 billion dollars. One of the key reasons for withdrawal were riots in Egypt, threatening political instability in developing countries. Much of these funds was transferred to U.S. securities, aided by good macroeconomic statistics. In particular, strong evidence emerged for GDP growth in the fourth quarter (up 2.9 percent on an annualized basis), as well as for industrial production in January. The greatest damage suffered funds of China and India, the outflow of funds of which exceeded $ 800 million. In contrast, Eastern Europe and Russia faced the problem of capital flight to a much lesser degree. As the Vedomosti, a relatively good performance of Russia may be due to investor interest in Russia as an alternative energy supplier in a political crisis spreads throughout the Middle East.
