Portfolio flows to emerging markets stands at $16.8B in December 2021

ANKARA

Portfolio flows to emerging markets (EM) stood at $16.8 billion in December 2021 with the outlook worsened by the omicron variant and expectations of a stronger dollar and higher US interest rates, the Institute of International Finance said on Tuesday.

"Foreign investment in emerging market stocks and bonds outside China has come to an abrupt standstill over fears that many economies will not recover quickly enough from the pandemic this year," it said in a statement.

However, China equity posted $12.5 billion in inflows as its economy rebounded more quickly than other EMs.

Non-China EM debt suffered an outflow of $9.6 billion last month, while China's debt saw an inflow of $10.1 billion.