YEREVAN, October 2. / ARKA /. Capital outflows from emerging markets are on track to exceed inflows this year for the first time since 1988 amid concern that a slowdown in China, a currency selloff and higher interest rates in the US will make riskier assets less attractive.

Investors are estimated to pull $540 billion from developing markets in 2015, according to the Institute of International Finance (IIF) based on data for 30 nations. Foreign inflows will fall to $548 billion, about half of last year’s level and below the amounts recorded during the financial crisis in 2008. At the same time, local outflows are accelerating amid heightened market volatility, pushing net flows into negative territory, Bloomberg reports.

Concerns about China’s growth and the Federal Reserve’s preparations for an increase in the near-zero US rates have roiled emerging markets from Colombia to Kazakhstan and spurred a deepening of the rout in commodities, further dimming sentiment toward countries like Russia and Brazil. Developing- nation economies are projected to expand by 4% this year, the slowest pace since 2009, according to economists surveyed by Bloomberg.

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