Almost 100 billion euros of private funds flowed back into the euro zone's periphery late last year after action by the European Central Bank encouraged reinvestment in the crisis-hit countries.
The scale of the net inflows, equivalent to about 9 percent of the economic output of Spain, Italy, Portugal, Ireland and Greece according to calculations by ING, the Dutch bank, highlight the revival in investor confidence in Europe's monetary union after Mario Draghi, ECB president, pledged to preserve its integrity.
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The return of capital has encouraged policy makers to believe the eurozone crisis is over, with Mr Draghi this month pointing to "positive contagion" in the region. The euro has also moved sharply higher.
Adding to evidence of a turn in sentiment, figures from the US Commodity Futures Trading Commission showed traders were last week more bullish on the euro than they have been in 18 months. Net long positions on the euro reached their strongest level since the summer of 2011.
However, the private inflows into the bloc's periphery remain modest compared with far larger outflows earlier in 2012, when many financial markets feared a eurozone break-up.
Total net private inflows into the periphery countries totaled €93 billion in the last four months of 2012, according to ING. In contrast, the first eight months had seen 406 billion euros flow out of the five countries, equivalent to almost 20 percent of gross domestic product in the periphery economies. In 2011, outflows from the periphery totaled 300 billion euros.
"There is still a way to go, but there has been a significant reversal of the capital flight," said Martin van Vliet, ING economist. "If you look at the outflow in the first eight months of last year, it was scary. Trust is hard to gain and easy to lose."