Thursday 14 April 2011

COMMODITY PRICES

Bloomberg_logo

BRICS LEADERS SAY INCREASING COMMODITY PRICES POSE THREAT TO GLOBAL GROWTH

Bloomberg, April 14, 2011

The leaders of Brazil, Russia, India, China and South Africa said excessively volatile commodity prices pose a threat to the global economy and called for greater regulation of derivatives markets.

Volatility “poses new risks for the ongoing recovery of the world economy,” the leaders said, according to a communique from their summit in the Chinese resort of Sanya. The BRICS, as the five are known, also called for greater vigilance over the impact of the flow of capital from developed economies into emerging markets and agreed on a plan to make more loans in local currencies.

Rising food and fuel prices are pressuring importers such as China and India to hold down prices for their 2.6 billion people. Exporting countries such as Brazil, Russia and South Africa are benefiting from the trade, yet are concerned that over-reliance on resources will stifle diversification of their economies, leaving them vulnerable should demand drop.

“The fiscal outlook for emerging economies is more favorable, but this reflects in part the tailwinds of high asset and commodity prices, low interest rates and strong capital inflows,” the International Monetary Fund said in a report this month. A “reversal could leave fiscal positions exposed.”

(...) [artículo aquí]

No comments: