There are some countries in the emerging markets that are highly vulnerable to sudden drop in capital inflows, according to The Economist. These nations face the risk of foreign investors halting their investments in these markets due to the risky environment.
Let's take a look at some of the most vulnerable nations, including India.
Source: The Economist
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Turkey
Risk score: 17 points out of 20
Overall rank: 1
Turkey, one of the fastest growing economies in the world, is struggling to control its falling currency and managing its rising debt.
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Romania
Risk score: 14.2 points out of 20
Overall rank: 2
Romania, which was hit hard by the 2008 global economic crisis, is taking measures to revive its economy.
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Poland
Risk score: 14 points out of 20
Overall rank: 3
Poland, which like Romania was hit hard by the 2008 global economic crisis, faces risks due to continuing slowdown.
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Mexico
Risk score: 13.9 points out of 20
Overall rank: 4
Mexico, one of the biggest economies in the region, depends largely on United States for its trade.
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Colombia
Risk score: 13.7 points out of 20
Overall rank: 5
Colombia, one of the biggest exporters of cocoa and coffee, has recently taken measures to boost its economy after years of internal strife.
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Peru
Risk score: 13.5 points out of 20
Overall rank: 6
Peru, which is rated high on Human Development Index, exports copper, gold, chemicals and pharmaceuticals.
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Argentina
Risk score: 12.5 points out of 20
Overall rank: 7
Argentina, which has abundant natural resources, has a relatively high GDP per capita and is termed upper-middle economy.
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Indonesia
Risk score: 12.5 points out of 20
Overall rank: 8
Indonesia, one of the fastest-growing economies in Asia, is struggling to control its falling currency.
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Chile
Risk score: 12.2 points out of 20
Overall rank: 9
Chile, one of most prosperous countries in South America, has a booming tourism industry.
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Hungary
Risk score: 11.8 points out of 20
Overall rank: 10
Hungary, one of the most open economies in central Europe, attracts billions of dollars in foreign investments every year.
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Brazil
Risk score: 11.6 points out of 20
Overall rank: 11
Brazil, one of the fastest growing economies in the world, is a major exporting powerhouse.
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Egypt
Risk score: 11.3 points out of 20
Overall rank: 12
Egypt, one of the biggest economies in Africa, is going through turmoil due to internal strife.
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Ukraine
Risk score: 11 points out of 20
Overall rank: 13
Ukraine, which was hit by the 2008 global economic crisis, has recently taken steps to attract more investments.
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India
Risk score: 10 points out of 20
Overall rank: 14
India, one of the fastest growing economies in the world, is struggling to control its falling currency, rising debt and high inflation.
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Venezuela
Risk score: 9 points out of 20
Overall rank: 15
Venezuela, which has one of the highest reserves of oil and gas in the world, has been hit by the global economic slowdown.
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South Africa
Risk score: 8.5 points out of 20
Overall rank: 16
South Africa, one of the biggest economies in Africa, is a major exporter of minerals and diamonds.
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Thailand
Risk score: 8.5 points out of 20
Overall rank: 17
Thailand, one of the fastest growing economies in Asia, is a major tourist destination.
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Bangladesh
Risk score: 8.3 points out of 20
Overall rank: 18
Bangladesh, one of the most densely populated countries in the world, is taking steps to boost its economy.
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Pakistan
Risk score: 7.9 points out of 20
Overall rank: 19
Pakistan, one of the biggest exporters of rice in the world, is taking steps to boost its economy.
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Russia
Risk score: 7.6 points out of 20
Overall rank: 20
Russia, which has one of the biggest reserves of oil and gas in the world, is struggling to boost its economy.
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Vietnam
Risk score: 7.6 points out of 20
Overall rank: 21
Vietnam, which has nominal GDP per capita of $1328.60, has taken several measures to attract capital.
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The Philippines
Risk score: 6.3 points out of 20
Overall rank: 22
The Philippines, which has nominal GDP per capita of $2,614, is projected to become the fifth-largest economy in Asia by 2050.
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Malaysia
Risk score: 5.2 points out of 20
Overall rank: 23
Malaysia, one of the fastest growing economies in the world, is a major trading nation.
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China
Risk score: 5 points out of 20
Overall rank: 24
China, the fastest growing economy in the world, is an economic powerhouse.
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Saudi Arabia
Risk score: 4.8 points out of 20
Overall rank: 25
Saudi Arabia, which has one of the biggest oil and gas reserves in the world, is taking measures to open up its market.
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