Inflows
in sentence
636 examples of Inflows in a sentence
A breath-taking current-account surplus is producing a tsunami of capital
inflows.
Remittances by expatriate workers are an essential lifeline for many developing countries – more so than any other financial inflows, including foreign direct investment and aid – and often help to balance a country’s books.
Not surprisingly, they are attracting capital
inflows
and featuring higher inflation rates (6.2% versus 1.6%).
Faster growth and stronger fundamentals are already attracting capital
inflows
into countries like Brazil, Chile, Peru, Colombia, and Uruguay.
Additional short-term capital inflows, accompanied by calls for protection of domestic industries, could easily turn “currency wars” into “trade wars” – a risk that could be compounded if the Doha Development Round ultimately fails.
Moreover, the intrinsic volatility of short-term capital
inflows
is another reason for emerging markets to continue accumulating foreign-currency reserves, thereby insulating their economies from sudden out-flows.
In an environment of high liquidity, in which Latin American countries are far less successful than China in fending off capital inflows, advising them to raise real interest rates can only lure more short-term capital, compounding appreciation pressures.
The IMF has recently accepted that controlling capital
inflows
could be appropriate under certain circumstances.
This led to increased flows into the carry trade, which for a while increased its success, because higher
inflows
tended to exacerbate the weakness of the low-interest-rate currencies.
As a result, these countries can expect lower capital inflows, again making for weak local currencies.
Official development assistance amounts to roughly $130 billion a year; though foreign-direct investment and portfolio
inflows
can help poor economies, additional sources of development finance must be found.
In 2013, migrants from developing countries sent home around $404 billion (excluding the vast unrecorded
inflows
that arrive through informal channels).
These
inflows
tend to be larger in poor and small economies, and often provide the main lifeline in fragile or conflict-affected countries.
Capital is in full flight, more than offsetting the
inflows
from 2008-2010.
Europe is already facing a perfect storm of fiscal strains, anemic economic growth, massive
inflows
of migrants and refugees, and renewed Russian aggression.
In Europe and elsewhere,
inflows
of Afghan refugees continue unabated.
Complicating matters even more, these
inflows
have become less and less connected to the recipient countries’ economic and financial fundamentals.
Some of this should be paid for by growth in the export of services and, more importantly, by capital
inflows.
But the key factor explaining Ortega’s strength is not cautious economic management, but rather the political impact of Venezuelan money,
inflows
of which have been privatized and are therefore not subject to normal mechanisms of public accountability.
Though squeezed by low world oil prices and anemic
inflows
of foreign investment, economic indicators have been moving in the right direction since January 2016, when, in the wake of the 2015 deal limiting Iran’s nuclear program, many international sanctions were lifted.
For starters, countries should embrace policies that favor foreign direct investment (FDI) over
inflows
that can be withdrawn more quickly, such as foreign bank loans, debt, or equity investments.
My research with Hui Tong of the International Monetary Fund shows that countries whose capital
inflows
that are mainly in the form of FDI tend to be more resilient to foreign financial shocks.
What is needed in southern Europe is acceptance that domestic demand must fall to a level that allows countries to live without further capital
inflows.
In particular, the reforms were needed to deflate an emerging property bubble resulting from huge savings and foreign capital
inflows
that had no other profitable investment outlet.
During the pre-crisis credit boom, growth in countries like Spain and Portugal was based largely on domestic demand, financed by capital
inflows.
So when capital
inflows
suddenly stopped, these economies were thrown into crisis.
Moreover, these countries are maintaining current-account surpluses while their growth rates rise; in other words, far from relying on fickle capital inflows, they are repaying their external debt.
Moreover, several major emerging economies were hit hard in the spring and summer, after the Fed’s signal of a forthcoming exit from QE triggered a capital-flow reversal, exposing vulnerabilities stemming from loose monetary, fiscal, and credit policies in the boom years of cheap money and abundant
inflows.
The country had experienced similarly strong net
inflows
at other times in the last three decades, without such adverse effects on per capita GDP growth.
And the prospect that sanctions on Iran’s oil exports will be phased out implies significant
inflows
of foreign direct investment aimed at increasing production and export capacity.
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