The Institute of International Finance recently revised its 2010 projection of net private capital flows to emerging markets upward to US$825 billion, a sharp rise from its April forecast of US$709 billion. Asia and Latin America are attracting the bulk of these flows, while the Central and Eastern Europe (CEE) region is showing much less capital magnetism. Poland, however, is a standout.
The growth picture in Eastern Europe’s biggest economy is among the region’s brightest, as detailed in our September Outlook update. Less trade dependent than its CEE peers, with an export-to-GDP[...]