WASHINGTON, Apr 29 (Reuters): The World Bank on Tuesday forecast that weakening global growth due in part to trade turmoil will push global commodity prices down 12% in 2025 and another 5% in 2026 to the lowest levels of the 2020s in real terms.
The development lender's latest Commodity Markets Outlook report shows that inflation-adjusted, commodity prices would tumble to their 2015-2019 average in the next two years, marking an end to a price boom fueled by the COVID-19 economic recovery and Russia's 2022 invasion of Ukraine.
The decline could moderate near-term inflation risks emerging from steep new US tariffs and rising trade barriers globally, but it also could have negative consequences for developing economies that export commodities.
"Higher commodity prices have been a boon for many developing economies, two-thirds of which are commodity exporters," World Bank Chief Economist Indermit Gill said in a statement. "But now we're seeing the highest price volatility in more than 50 years. The combination of high price volatility and low prices spells trouble."
WB sees commodity prices falling to pre-COVID levels
FE Team | Published: April 30, 2025 00:34:01
WB sees commodity prices falling to pre-COVID levels
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