Furthermore, on the back of the last-mentioned, net capital flows to emerging economies (excluding China) peaked at $ billion in June 2016, according to estimates by the Institute of International Finance.
However, after this June peak and for the remainder of 2016, the build-up to and outcome of the US presidential election sparked a wave of outflows from emerging markets, with portfolio flows estimated to have plummeted to a 41-month low as the so-called ‘Trump Trade’ favoured a stronger US dollar and higher US yields.