2024-03-09 07:00:00
JUntil 2016, long-term capital inflows from non-residents (from the rest of the world) were of similar sizes (4-5% of gross domestic product [PIB] each year) in the United States and the Eurozone. Suddenly, in 2016, while long-term capital inflows from non-residents remain stable in the United States, non-residents stop investing in the euro zone (long-term capital inflows consist of purchases of stocks, bond purchases and incoming direct investments) and even become slightly sellers of long-term euro zone assets.
We wonder what might have caused this sudden change in the attitude of non-residents towards the euro zone, this massive loss of attractiveness of the euro zone compared to the United States…
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#capital #turned #euro #zone
