South-South investment boom contd

In BeyondBrics

The sharp rebound in emerging economies since the global financial crisis owes much to the recovery in international capital flows. What is less obvious, however, is that a big chunk of new investment is coming from the emerging world itself.

FDI outflows from developing countries rose to an estimated $195bn – or 1.1 per cent of their gross domestic product – in 2010. This is only a fraction below the previous record of $207bn in 2008, which they are predicted to smash over the next two years , soaring to $250bn in 2011 and $275bn in 2012.