The good news in commodities

While worrying about the slump in commodity prices and its effect on emerging markets, investors are missing one key factor.

Summary: The IMF suggests the commodities slump could hold growth lower for longer in the commodity exporting nations. But demand for commodities hasn’t collapsed – all we’re witnessing is a price correction. Export volumes are strong, so investors shouldn’t get carried away by assertions that global trade has collapsed.

Key take-out: While weaker commodity prices do have an impact, without an actual fall in demand (driven by global recession), they generally don’t make a large or sustained hit on real growth.


SMS Code Sent…

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Log in to access this content

Looks you are already a member. Please enter your password to proceed

Hi {{ user.FirstName }}

Verify your mobile number to unlock a FREE trial

Looks like you've already taken a free trial

Please sign up for full access

Updating information

Please wait ...

Related Articles