In contrast, net FDI might finance less than one-third of India's deficit and only one-sixth of South Africa's, implying that their currencies are more at risk.

ECONOMIST: Economics focus

If we assume that net FDI continues at last year's pace, then it would more than finance the expected current-account deficits in Brazil and Mexico this year.

ECONOMIST: Economics focus

Foreign firms are bringing in more capital than they need for investment: the net inflow of FDI is 60% higher than a year ago, yet the actual use of this money for fixed investment has fallen by 6%.

ECONOMIST: Capital inflows to China