Capital Outflow

A situation in which money leaves an economy at an extremely high rate. That is, capital outflow occurs when economic actors liquidate their investments and deposit their capital in another economy. Capital outflow is generally indicative of a larger problem, such as a weakening currency. It is most common in developing countries and is considered a highly negative event.

capital outflow

a movement of funds out of a particular country into one or more foreign countries, representing, on the one hand, investments by individuals, companies and institutions and by government in foreign physical assets and financial securities, and on the other hand, the provision of borrowing facilities and loans to foreigners. See CAPITAL INFLOW, FOREIGN INVESTMENT, FOREIGN DIRECT INVESTMENT, BALANCE OF PAYMENTS.

capital outflow

a movement of domestic funds abroad, representing either the purchase of foreign FINANCIAL SECURITIES and physical ASSETS by domestic residents or the BORROWING of domestic funds by foreigners. See CAPITAL INFLOW, BALANCE OF PAYMENTS, FOREIGN INVESTMENT, HOT MONEY.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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References in periodicals archive

In the meantime, Chinese yuan is expected to continue losing its value after China allowed its currency to fall below 7 against US dollar last week while how effective the measures taken to prohibit capital outflow remains uncertain.

Gold Rate - Gold Inches Up On Monday amid Worries on Global Outlook

The current rate of 1.75 percent came a year after the previous increase mostly due to fears of massive capital outflow and sluggish domestic economy.

BOK's renewed rate cut dilemma

An editorial by Nikkei asserts that in order to prop up the Chinese Yuan, China may begin to strengthen restrictions on capital outflow and even travel by tourists abroad, potentially having a major impact on the world economy.

Xi may restrict Chinese tourism abroad to protect forex reserves

The analyst notes that the company's real problems have come into the open, namely dramatic working capital outflow, no improvement in weak internal controls, slow admission of a smaller Onshore/Offshore business, oddities in its cash balance, and patchy customer adoption of its integrated model.

TechnipFMC upgraded to Market Perform at Bernstein

This large net capital outflow has likely helped cap benchmark long-term bond yields in the US (and elsewhere) and a reversal of these flows could drive yields upwards.

Global bond yields could see upward pressure

Control over capital outflow should be strengthened in Azerbaijan, Azerbaijani MP Fazail Aghamali said.

Control over capital outflow should be strengthened in Azerbaijan

'It also helped to reduce, and impose tax onto the black economy, reducing tax evasion and illicit capital outflow,' he said while debating the royal address in the Dewan Rakyat.

Najib insists GST can curb illegal capital outflows

The kingdom is now experiencing a plunge in foreign investment and high levels of capital outflow, according to a report in Business Insider.

'800,000 expats exit Saudi, creating a hiring crisis'

The first signs of pressure in 2018 began to emerge in February when the Institute of International Finance (IIF) data shows there was a monthly portfolio capital outflow from emerging markets for the first time since November 2016.

EM capital flows prove more volatile in '18 due to rising US rates: QNB

In an emailed response to Bloomberg, Professor Global Development Policy at Boston University, Kevin Gallagher said China came across a sudden capital outflow in late 2016 and early 2017 due to a mix of premature capital liberalization and external conditions.

Chinese investments in OBOR energy projects fell 28 percent in 2017: Report

'Policy rate adjustments will help neutralize the (US) Fed rate hike on the interest rate differential between onshore and offshore, thus slowing the pace of capital outflow-As China continues to face significant capital outflow, onshore credit conditions will tighten further and put pressure on onshore interest rates.

PSEi ends slightly higher despite China rate hike, DENR order