Barriers and Opportunities for Enhancing Capital Flows
In the COMCEC Member Countries
6
Figure 1.2 The evolution of total gross and net capital flows
Source: ‘Capital Flows are Fickle: Anytime, Anywhere’, IMF, August 2013
Tentative recovery in capital flows to developing economies began in the spring of 2009 as
monetary easing by key central banks in developed countries stabilised capital markets and a
massive stimulus programme by the Chinese authorities began to drive recovery in global GDP.
Yet while net private capital flows to developing countries grew to $950bn in 2010, they
remained well below the pre-crisis peak levels reached in 2007, by approximately $300
billion2 . Risk appetite remained fragile in the aftermath of the global financial crisis. Capital
2
UN, ‘World Economic Situation and Prospects 2011’