INSUBCONTINENT EXCLUSIVE:
Global growth is expected to slow down in 2025, with foreign investors likely to reduce their investments in emerging markets by nearly 25%,
according to the Institute of International Finance (IIF).This forecast is driven by the policies of the new United States President,
decisions.The threats of tariffs, a stronger dollar, and slower-than-expected interest rate cuts by the Federal Reserve are making the
capital flow environment more challenging
emerging markets, especially those rich in resources in the Middle East and Africa, are expected to attract robust flows of bonds and
stocks.In 2024, China experienced its first negative flow of foreign direct investment in decades
(Photo Internet reproduction)This divergence highlights the continued resilience of non-Chinese emerging markets
They are supported by improved risk sentiment, structural changes like supply chain diversification, and strong demand for local currency
debt.Global Growth OutlookThe IIF projects global growth to moderate to 2.7% in 2025, down from 2.9% this year
Meanwhile, emerging markets are expected to grow at 3.8%.However, capital flows to emerging markets are forecast to drop to $716 billion,
compared to $944 billion this year
This decline is primarily due to weaker flows to China.The IIF warns that its base scenario assumes only selective implementation of tariffs
and rapid implementation of tariffs by the United States could exacerbate risks, amplifying global trade and supply chain disruptions, and
