The World Bank has forecasted strong gains for industrial commodities like energy and metals in 2017, holding crude oil price forecast for the year at $55 per barrel due to tightening supply and strengthening demand.
The Bank’s January 2017 Commodity Markets Outlook, said the forecast for crude oil is a 29 percent jump from 2016. The energy price forecast assumes members of the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers will partially comply with an agreement to limit production after a long period of unrestrained output.
John Baffes, Senior Economist and lead author of the Commodity Markets Outlook noted: “Prices for most commodities appear to have bottomed out last year and are on track to climb in 2017. However, changes in policies could alter this path."
Agriculture prices as a whole are expected to rise by less than one percent in 2017. Small increases are anticipated for oils and oilseeds and raw materials, but grains prices were forecast to drop almost three percent on an improved supply outlook.
“Precious metals prices are seen declining seven percent as benchmark interest rates rise and safe-haven buying slows,” the statement said
A Special Focus of the outlook showed how commodity-exporting emerging and developing economies have been hit hard by slowing investment growth, which has declined from 7.1 percent in 2010 to 1.6 percent in 2015.
Ayhan Kose, Director of the World Bank's Development Prospects Group said investment weakness - both public and private - hindered a range of activity in the commodity-exporting emerging market and developing economies.
"Most of these economies have limited policy space to counteract the slowdown in investment growth, so they need to employ measures to enhance the business environment, promote economic diversification, and improve governance to better growth prospects over the longer term,” noted Kose.
The World Bank's Commodity Markets Outlook is published quarterly, in January, April, July and October and provides detailed market analysis for major commodity groups, including energy, metals, agriculture, precious metals and fertilisers.
This edition extends price forecasts to 2030 for 46 commodities and provides historical price data.
Latest Stories
-
Let’s prioritize research quality in higher education institutions for industrial growth-Prof. Nathaniel Boso
4 hours -
Herman Suede is set to release ‘How Dare You’ on April 24
8 hours -
Heal KATH: Kuapa Kokoo, Association of Garages donate 120k to support project
8 hours -
KNUST signs MOU with Valco Trust Fund, Bekwai Municipal Hospital to build student hostel
8 hours -
The influence Ronaldo has on people, Cadman Yamoah will have same on the next generation – Coach Goodwin
9 hours -
Gender Advocate Emelia Naa Ayeley Aryee Wins prestigious Merck Foundation Awards
10 hours -
South Africa bursary scandal suspects granted bail
10 hours -
Ecobank successfully repays $500m Eurobond due April 18
11 hours -
Re: Doe Adjaho, Torgbui Samlafo IV, call for Unity among Paramountcies in Anlo
11 hours -
Extortion and kidnap – a deadly journey across Mexico into the US
11 hours -
Rihanna says fashion has helped her personal ‘rediscovery’ after having children
11 hours -
Development Bank Ghana targets GH¢1bn funding for commercial banks in 2024
11 hours -
Shatta Movement apologises to Ghana Society of the Physically Disabled after backlash
12 hours -
Sammy Gyamfi writes: Tema-Mpakadan Railway Project; A railway line to nowhere
12 hours -
Bright Simons: Is the World Bank saving or harming Ghana?
13 hours