Trend Capital leaving China is redistributed among developing regions without being replaced

Summary

This trend describes how capital that once went to China is being spread among other developing regions without fully replacing it. Between 2017 to 2020 and 2021 to 2024, inflows grew in absolute terms elsewhere. They rose 14.1 percent in developing Asia excluding China, 12.2 percent in Latin America and the Caribbean, and 26.4 percent in developing Europe. The report stresses, however, that these gains did not make up for the steep drop in China. The global map of capital flows has therefore been redrawn through redistribution rather than one-for-one substitution, leaving overall developing-economy inflows lower than the headline regional gains suggest.