Amid the nervousness of investors, as a result of the escalation of the trade dispute between the United States and China and the weakness of global economic growth, Emerging markets experienced capital outflows in August.
Estimates of the Institute of International Finance (IIF), indicate that, together, the negative flow of resources would have amounted to 13,800 million dollars, only in that month.
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Moreover, the IIF says that "our daily flow tracker shows that in August there were 18 days (of 21) with negative flows."
According to the report, the outputs corresponded to resources that were invested in shares. That explains that a good part of the stock market indicators in emerging markets have had devaluations in the period analyzed.
Seeing the behavior by regions, exits were seen everywhere, but especially in emerging Asia (-7.6 billion dollars) and Latin America (-3.9 billion dollars).
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As recalled, in this part of the world there is high tension coming from several fronts: Argentina, with a strong off-hook of its assets before the possibility of a return to the power of populism; while raising concerns about the weakness of the economies of Brazil and Mexico, the largest in the region.
For now, the IIF does not expect a significant rebound in investment flows to emerging countries in line with the situation.
However, their estimates for the end of 2019 indicate that, in most markets, net investment flows will be positive, although in many cases lower than the previous year.
In Latin America, almost all the countries analyzed fit into this group. For example, for Argentina it estimates a positive flow of 18.6 billion dollars, half that in 2018.
For Brazil, it expects a flow of 34.9 billion dollars, towards Chile the expectation is 9.8 billion dollars, Colombia calculates 13.6 billion dollars and for Mexico it expects 23.1 billion dollars.