Finance

Net Capital Outflow

Net Capital Outflow

Net Capital Outflow is the movement of assets from a country. Capital outflow is recognized as undesirable and final results from political as well as economic instability. It occurs as soon as foreign and every day investors sell away their assets in a particular country since they no longer perceive it as a safe investment. The capital is withdrawn in the country (flows out) and may finish up in another country or in the investor’s property country.