External financing

The rapid growth of capital flows in international markets seen in previous years continued in 1993, with growth of 33%, after increases of 21% and 16% in 1991 and 1992, respectively. The share of international capital received by Latin America was again substantial, for the second consecutive year, due largely to a notable increase in bond sales, which exceeded US$ 27 billion. Share flotations for capital formation also increased through the medium of American Depositary Receipts (ADRs), taken up by mutual funds and other investors. The increase in these portfolio investments was due mainly to a sustained fall in the interest rates ruling in industrialized countries, above all in the United States. Short-term rates fell throughout the developed world in 1993, although there were significant fluctuations in Europe, as a result of exchange rate instability. Long-term rates also continued to fall, in response to the consolidation of public finances in the United States and a drop in inflationary expectations.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions