Local savings limit outflows, but risks remain

Local savings limit outflows, but risks remain

Funds Economy & Policy

The exponential growth of private pension funds in Latin America has cut the region's dependence on global capital inflows from an "absolute" one, to a "marginal" one, said Jorge Errázuriz, vice president of Celfin Capital. As US Treasury rates have climbed in recent months, global investors have yanked money from emerging market bond and equity funds in anticipation of better returns closer to home. Investors took $1.3bn out of emerging market debt funds and $2.09bn out of EM equity funds in the week to July 10. "[Latin America] is no longer dependent on the flows, and the outflows have not stopped investment projects," said Errázuriz. "Chile continues to grow, it's forecast to gro

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