Welcome to the United Nations
November 2010
Summary:
- Surges in private capital flows pose challenges to emerging economies and enhance tensions over currencies
- European countries go deeper into fiscal austerity
- Industrial production growth is slowing worldwide
- Heavy floods in Central and West Africa threaten food security
Capital inflows have been returning to emerging economies since the second?half of 2009, after a sharp decline during the height of the global financial?crisis. Portfolio investment inflows have been particularly strong. Portfolio?inflows to emerging economies are estimated to be about $150 billion in?2009 and $190 billion in 2010, well above peak levels registered before the?crisis in 2007. The strong new inflows of mostly short-term portfolio investment are causing concerns in emerging economies fearing the inflation of?new asset bubbles and the loss of export competitiveness as their currencies?are appreciating.
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Download the World Economic Situation and Prospects Monthly Briefing No. 25