Emerging markets got US$502b in 2006

Investors pumped US$502 billion into emerging markets in 2006, with a big portion going to China and other Asian economies, AFP reported quoting figures from the Institute of International Finance (IIF). Some US$197 billion went to Asia, while emerging European economies accounted for US$218 billion, Latin America got US$46 billion and Africa US$31 billion. The total was slightly below the US$509 billion recorded in 2005. According to the IIF report, investors remained upbeat about countries with greater risk but this trend is likely to slow down in 2007 as flows of capital to emerging markets are expected to hit US$469 billion. The institute, a global association of banks and big financial institutions, said there are several risks in the outlook for the coming year, including the uncertainties surround the current slump in the housing market in the US.