Dropping Foreign Investment in Emerging Markets Amid Tariff Threats

Reported about 13 hours ago

According to the Institute of International Finance (IIF), foreign investment in emerging markets is expected to decrease by nearly 25% in 2025 due to anticipated tariffs from incoming U.S. President Donald Trump, a stronger U.S. dollar, and slower interest rate cuts. China is projected to face significant outflows, while non-China emerging markets may benefit from increased capital inflows, particularly in resource-rich regions like the Middle East and Africa. Overall, global growth is predicted to slow to 2.7%, further affecting capital flows to these markets, which the IIF warns could worsen if tariffs are implemented more aggressively.

Source: YAHOO

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