Emerging Markets Face Decrease in Risk Appetite

Politics ♦ Published: December 14, 2013; 17:53 ♦ (Vindobona)

Foreign investors become more and more cautious about investing in emerging markets. Regions like Central, Eastern and Southeastern Europe are highly dependent on foreign sentiments.

Emerging Markets Face Decrease in Risk Appetite / Picture: © Vindobona.org

According to the Multilateral Investment Guarantee Agency (MIGA), foreign investors tend to reduce their investments in emerging markets. This is mainly due to the continued economic difficulties, political instabilities and the global economic outlook. For foreign investors, political risks and macro-economic instabilities are the biggest concerns.

For the CESEE region, a fall…