capital flight

Syllable breakdown

Dictionary meaning

the rapid movement of financial assets or capital out of a country, driven by concerns about economic instability, political uncertainty, currency depreciation, or the imposition of capital controls; capital flight can precipitate or worsen economic crises by depleting foreign exchange reserves, weakening the currency, raising borrowing costs, and reducing domestic investment; it is particularly damaging for developing economies that depend on foreign capital to finance investment and current account deficits, and has historically accompanied periods of political turmoil, financial panic, or policy uncertainty