On net capital outflow.

• Author: Rees, Matthew
• Position: Emerging Markets - Brief article

"According to estimates by the International Monetary Fund, the developing economies as a group had a current account surplus of $640 billion last year. Because the financial counterpart to this surplus is a deficit on the financial accounts, it represents the net capital outflow to the industrial economies. $640 billion is a big number and stands in sharp contrast to the situation preceding the Asia crisis. For example, in 1996 the combined current account balance of the developing economies was a...