Cross-border capital flows are fragmenting as geopolitical tensions reshape FDI and portfolio investment patterns. FDI is becoming more regional and stable, while portfolio flows are fleeing uncertainty-creating new winners, losers, and risks in global finance.
Cross-border capital flows are fragmenting as geopolitics reshape investment patterns. FDI is holding steady while portfolio flows retreat, pushing capital into regional blocs and raising costs for emerging markets. Here's what's really happening.