Businessweek Archives

Foreign Capital Is Doing More Ebbing Than Flowing


Economic Trends

FOREIGN CAPITAL IS DOING MORE EBBING THAN FLOWING

Alan Lerner isn't alone in asserting the economy is undergoing a credit squeeze. Economic consultant Sam Na-kagama points to a sharp slowdown in the nation's net inflow of foreign capital -- from $166.9 billion in 1987 to an actual outflow at a $52.3 billion annual rate in the first half of this year. The main cause, he says, has been a massive reversal in Japan's and Germany's capital flows, from a combined outflow of $80 billion in 1990 to an inflow at a $19.4 billion pace this year. In this situation, says Nakagama, "tax cuts that lead to rising deficits may be of little avail."GENE KORETZ


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus