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FACTBOX-Emerging Asia attracts top capital inflows-IIF

Published 11/23/2009, 02:47 AM
Updated 11/23/2009, 02:51 AM

Nov 23 (Reuters) - A surge in capital flowing into emerging economies has sparked Brazil and Taiwan to impose capital controls and policymakers in some other countries are talking of restrictions.

The Institute of International Finance (IIF) forecasts that private capital flows will almost double over the next year, with Asia seeing the biggest surge.

For a FACTBOX of recent hot money concerns in emerging economies: [ID:nSP425149]

Global capital inflows from private and official sources will double from $349 billion in 2009 to $672 billion in 2010, the Washington-based association of financial institutions said in a recent research note.

Emerging Asia, already the "unambiguous" leader of the global business cycle, will continue to dominate the private capital flow cycle, it concluded after surveying 30 key emerging economies.

Net private flows to Asia are projected to rise from a low in 2008 of $171 billion to $191 billion in 2009, and surge further to $273 billion in 2010, the IIF calculates.

This summary compares emerging markets' global capital flows by regions, and predictions for 2010. All data is from the IIF. -------------------------------------------------------------

CAPITAL INFLOWS TO EMERGING ECONOMIES BY REGION

(Net $ billion). -----------------------2007-----2008-----2009f**--2010f------

PRIVATE FLOWS 1252.2 649.1 348.6 671.8

Latin America: 228.9 132.4 99.8 150.9

Emerging Europe: 445.7 270.1 20.4 179.3

Africa/Middle East: 155.4 75.3 37.4 68.7

Emerging Asia: 422.2 171.2 191.1 272.9 -------------------------------------------------------------

OFFICIAL FLOWS: 42.9 55.5 63.6 43.4

Latin America: 6.3 14.5 22.2 14.7

Emerging Europe: 4.2 20.9 39.4 16.8

Africa/Middle East: 3.7 1.5 1.9 5.6

Emerging Asia: 28.6 18.5 0.0 6.3

** (F) signifies forecast figures * IIF definitions of emerging economies:

Emerging Asia: China, India, Indonesia, Malaysia, Philippines, South Korea, Thailand

Emerging Europe: Bulgaria, Czech Republic, Hungary, Poland, Romania, Russian federation, Turkey, Ukraine

Latin America: Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Venezuela

Africa/Middle East: Egypt, Lebanon, Morocco, Nigeria, Saudi Arabia, South Africa, UAE

Source: IIF (http://www.iif.com/about/article+204.php) (Reporting by Gillian Murdoch; Editing by Neil Fullick)

((gill.murdoch@thomsonreuters.com, +65 6417 4681, Reuters Messaging gill.murdoch.reuters.com@thomsonreuters.net))

((If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com))

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