Capital Flows to Asian and Pacific developing Countries: Recent Trends and Future Prospects
The rapid economic growth in many Asian countries complemented with economic liberalization and financial sector reforms have greatly increased the competitiveness of Asian and Pacific Developing Countries (APDCs) in the world financial markets. During the past two years, aggregate financial flows to APDCs have grown steadily, with nondebt flows growing more rapidly, and now comprising almost half of the total capital flows compared with 25 percent a decade ago. External debt has remained healthy with debt outstanding increasing moderately. The share of both private long term and private short term debt has increased, while the share of official credit to the total debt stock has been slightly reduced.