Causes and Consequences of Industrial Commodity Price Shocks

Abstract

No AccessDec 2022Causes and Consequences of Industrial Commodity Price ShocksAuthors/Editors: Alain Kabundi, Peter Nagle, Franziska Ohnsorge, Takefumi YamazakiAlain KabundiSearch for more papers by this author, Peter NagleSearch for more papers by this author, Franziska OhnsorgeSearch for more papers by this author, Takefumi YamazakiSearch for more papers by this authorhttps://doi.org/10.1596/978-1-4648-1911-7_ch4AboutView ChaptersPDF (30.5 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract: Recognizes that the 2020 global recession triggered by the COVID-19 pandemic and the subsequent war in Ukraine in 2022 roiled commodity markets. As demand dropped in the first four months of 2020, global energy prices plunged 61 percent and metal prices fell 16 percent. When global economic activity rebounded and pandemic disruptions to production subsided, energy and metal prices recovered quickly and reached multidecade highs in the wake of the Russian Federation’s invasion of Ukraine in 2022. More than half of emerging market and developing economies rely heavily on industrial commodity sectors for export earnings and fiscal revenues. Price increases associate with small, temporary growth accelerations; price declines associate with pronounced and lasting slowdowns. These effects underscore the importance of robust policy frameworks in energy- and metals-producing countries that can smooth global commodity price shocks. Structural reforms that favor growth and more diversified economic activity would reduce vulnerability to external shocks. Previous chapter FiguresreferencesRecommendeddetails View Published: December 2022ISBN: 978-1-4648-1911-7e-ISBN: 978-1-4648-1912-4 Copyright & Permissions Related CountriesRussian FederationUkraineRelated TopicsAgricultureInternational Economics & TradeMacroeconomics and Economic GrowthPrivate Sector Development KeywordsCOVID-19 ECONOMIC IMPACTPRICE VOLATILITYCOMMODITY PRICESEXPORTERSCOMMODITY TRADINGAGRICULTURAL COMMODITY TRADINGGLOBAL ECONOMYFUEL PRICESEMERGING MARKETS AND DEVELOPING ECONOMIESEMDESSLOWDOWNMACROECONOMIC SHOCKSEXTERNAL SHOCKS PDF DownloadLoading ...