Capital Flows to Developing Countries Show Strong Drop

Net capital flows to developing countries fell to US$780 billion in 2008, reversing an upward trend that began in 2003 and peaked at US$1,222 billion in 2007, according, to a new report from the World Bank. Particularly hard hit were private capital flows, which fell by almost 40%. All developing regions were affected, with emerging market economies in Europe and Central Asia experiencing the sharpest downturn.