Egypt lost private investments worth $16 billion in early 2011

Ahram Online, Wednesday 1 Jun 2011

Global bank group expects foreigners to withdraw further capital due to ongoing political uncertainty

Foreigners have withdrawn around US$16 billion in private capital from Egypt this year in the wake of political turmoil, a global bank group said on Wednesday.

An emerging markets report from the Institute of International Finance (IIF) said it expected foreigners to withdraw further capital from the Arab world's most populous country due to ongoing uncertainty.
The investor retreat contrasts with the situation in other emergent nations, where surging private investment money could reach $1.041 trillion in 2011, up from a previous estimate of $960 billion.
"Most of the $81 billion upward revision of our 2011 estimate since January is due to higher inflows to China and Brazil," the IIF's report said.
IIF said it expected private capital inflows to emerging economies to rise only slightly in 2012, to $1.056 trillion, as a bounce back from the global financial crisis begins to lose some of its spring.
It estimated private capital inflows to emerging economies soared to $990 billion in 2010, about $350 billion higher than in 2009.
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