Story perspectives

JP Morgan Warns: Emerging Markets Face Capital Flow Crisis

1/27/2025

33 6

Summary

Story summary

JP Morgan cautions that emerging markets could experience abrupt capital flow disruptions due to Trump's 'America First' policies.
Romania, Hungary, Malaysia, and South Africa are identified as the most at-risk nations.
The challenges arise from global financial tightening and rising interest rate expectations, rather than localized market issues.
Developing economies faced $19 billion in net capital outflows last quarter, with another $10 billion anticipated in Q1.

1 of 1

Story summary

JP Morgan cautions that emerging markets could experience abrupt capital flow disruptions due to Trump's 'America First' policies.
Romania, Hungary, Malaysia, and South Africa are identified as the most at-risk nations.
The challenges arise from global financial tightening and rising interest rate expectations, rather than localized market issues.
Developing economies faced $19 billion in net capital outflows last quarter, with another $10 billion anticipated in Q1.