Foreign investment in emerging markets is expected to reach $970 billion in 2017, up 35%, or $252 billion, from 2016, Reuters reported June 6, citing new research by the Institute of International Finance.

The 2017 projection is reportedly $290 billion more than the IIF's four-month old estimate.

The institute anticipates nonresident capital inflows to emerging markets to cross the $1 trillion mark in 2018, breaching that level for the first time since 2014, Reuters reported.

Meanwhile, resident capital outflows from emerging economies are expected to decrease by $141 billion to $892 billion in 2017, with a further drop in outflows expected in 2018.

Overall, the institute projects net capital outflows from emerging markets, led by resident capital outflows from China, according to the report.