Development Finance International

The 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.