Crossborder capital outflows worth $2.75bn exited emerging markets in the final four months of 2011, according estimates issued by Cross Border Capital, an investment advisory firm. Between September and December 2011, emerging market capital outflows – in the form of bonds equities and banking flows – were at their highest level since 2008. 

In its monthly report, Cross Border Capital states: “Disappointed by their underperformance in 2011, even against fragile eurozone equities, the sceptics are... questioning the potential of the emerging markets... Rapid GDP growth somehow strangely never translates in rising asset prices in [emerging markets], according to this view.”

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It would seem that investor appetite within emerging markets remains unaffected, however. fDiMarkets recorded 870 outward greenfield investment projects from 522 different emerging market companies between September and December 2011. With an average project size of $68m, these figures support the net capital outflow recorded by Cross Border Capital.