Dallas Fed, Report: Capital Flowed from Emerging Markets as Pandemic, Economic Cycle took Hold

“Weekly portfolio capital inflows to emerging-market economies fell sharply as the COVID-19 pandemic shook the global economy in March 2020.”

“The drop was comparable to that during the depths of the Global Financial Crisis in 2008, based on data for a sample of 24 emerging-market economies compiled by Emerging Portfolio Fund Research and used here as a proxy for capital flows (Chart 1). The data show movement into emerging-market bond and equity mutual funds and exchange-traded funds (ETFs). In the third week of March 2020 and in the second week of October 2008, weekly portfolio outflows from emerging-market funds totaled nearly 2 percent of the funds’ total assets under management.”