Capital flight in the emerging and frontier markets has remained minimal despite the economic fallout of the Middle East crisis, signalling relief for East Africa’s capital markets.
Global rating agencies and economists say the external shocks arising from the ongoing Middle East conflict have tended to favour emerging markets, as the resulting fiscal concerns, energy-driven inflation pressures and, in some cases, banking stress are concentrated primarily in advanced economies, improving the relative standing of several large emerging market sovereigns in global portfolios.
