Private capital flows fell sharply in the latter half of 1997 after having risen in the beginning of the year, as short-term capital flowed out of emerging markets in the wake of the Asian crisis. Total flows were up slightly to US$256bn from US$247bn in 1996. Net long-term flows remained about the same as in 1996 at US$127bn. Private flows are predicted to fall in early 1998 but this may reverse in the medium-term if market confidence is restored.
Global Development Finance 1998, World Bank. Contact: publications@worldbank.org
