Thailand
Indonesia: Capital Flow to Developed Countries Exceeds One Trillion Dollars
TEMPO.CO, Jakarta – The research conducted by the Institute of International Finance (IIF) shows that developed countries will attract capital investments exceeding US$1 trillion or Rp13,463.6 trillion in 2017. According to IIF Executive Director Hung Tran, the positive atmosphere first started in 2014 during the improved economy of developing countries.
In a report published on Tuesday in Washington, IIF stated that the economic growth of developing countries far exceeds the growth in developed countries. Hung Tran views that the accelerated economic growth of developing nations is becoming the only factor that attracts investors.
Based on IIF records, non-resident capital flows towards developing countries reached US$ 1.1 trillion during this year, which will increase to US$1.2 trillion in 2018. Tran argues that the aspects that can improve investments in 2018 are debt portfolio, equity, and banking conditions that far exceeds expectations.
IIF revised its investment flow forecast analysis to US$ 970 billion in June, which is US$290 billion higher than the previous projection on February when Donald Trump first took office as the President of the United States. At the time, investors were worried that Trump’s protectionist economy would cause the economic weakening of developed countries.
The International Monetary Fund (IMF) predicts that the growth of the global economy will advance from 3.5 percent to 3.6 percent throughout 2017-2018. Although, as the research by the World Economic Outlook suggests, IMF has reduced its forecast for economic growth in developed countries such as the United States and the United Kingdom.
Source: https://en.tempo.co/read/news/2017/10/05/056912036/Capital-Flow-to-Developed-Countries-Exceeds-One-Trillion-Dollars