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Emerging Markets Capital Flows Monitor (May 2025)

Capital inflows into EMs have been resurgent over the past few weeks amid a broad improvement in global risk appetite. But while our base case is that EM markets eke out further gains, the range of possible outcomes is very wide and there is a risk of renewed period of EM outflows. Most EMs would be well-placed to cope, with Argentina and Egypt the notable exceptions.

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