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7 October: IMF WEO: capital flows surge to LAC / SSA recovery accelerates

Friday, 08 October 2010 18:18

IMF_WEOThe October 2010 edition argues that a resurgence in FDI, portfolio, and other flows to the LA-5 (Brazil, Chile, Colombia, Mexico and Peru) is providing cheap and ready finance to boost domestic demand, but simultaneously risks overheating, lost competitiveness, higher sterilisation costs, and boom-bust. SSA growth is accelerating, and although FDI and remittances were less affected by the crisis than feared, remittances remain vulnerable to global conditions. Prospects across both regions vary by country.

 

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