The withdrawal of several important investors from emerging markets and the problems banks face, adding to the drastic decrease of exports create major financing difficulties for the emerging countries, the International Monetary Fund's report on global financial stability, released on Tuesday, indicates. The risks are increased in the Eastern Europe, IMF says.
The level of foreign investments on emerging markets will have negative values in 2009, IMF shows, without any sight of returning to the level before the crisis during the next few years. In 2009, emerging economies will lose around 1% of their GDPs, because of the lack of investments, recovery chances being low for 2010 and 2011.
Read a summary of the report here or click here to read the first chapter of the report.
