Private-sector capital inflows consist largely of foreign direct investment (FDI), portfolio investment, and such other forms as loans and deposits. Privatesector capital inflows to emerging economies are concentrated in portfolio investment, followed by FDI. In recent years, there has in addition been an increase in capital inflows in terms of other items.
2  The National Audit Office of the People’s Republic of China reported that the country’s local government debt accounted for around 27 percent of GDP last year. Some observers believe that China’s actual public debt is greater than the officially reported figure and that the debt-to-GDP ratio should stand at around 55 percent.